System and method for granting promotional rewards to credit account holders

ABSTRACT

A system and method for providing promotional rewards is provided. First, a promotional reward is communicated to a customer. The promotional reward offer comprises a promotional reward associated with one or more promotional reward-earning behaviors and a promotional time frame. The offer may specify a customer population, and the customer may be enrolled in the promotional reward program if the customer is determined to be in the population. The customer is credited a promotional reward if the customer accomplishes the promotional reward-earning behavior(s) within the promotional time frame. The customer may also be enrolled in a base reward program. The promotional rewards and base rewards may be accumulated in a customer account. A system for implementing a promotional rewards program is also provided.

RELATED APPLICATIONS

This patent application is a Continuation of U.S. patent applicationSer. No. 10/683,294, filed on Oct. 14, 2003, entitled “SYSTEM AND METHODFOR GRANTING PROMOTIONAL REWARDS TO CREDIT ACCOUNT HOLDERS,” whichclaims priority to Provisional Application Ser. No. 60/417,658, filedOct. 11, 2002. The disclosures of these priority applications are herebyincorporated by reference in their entirety.

FIELD OF THE INVENTION

The present invention is generally related to data processing techniquesfor enabling bank customers to earn promotional rewards. Moreparticularly, the present invention is related to a data processingtechnique for allowing a Bank's existing credit cardmembers to earnpromotional rewards for specific triggering behaviors in a specific timeframe, wherein the rewards can be targeted to specific cardmembers orgroups.

BACKGROUND OF THE INVENTION

Rewards are given to customers by merchants for various reasons,including to encourage certain consumer behaviors and also to strengthenrelationships between Banks and customers. Rewards can also be used tostrengthen the relationships between merchants and customers, such aswhen a Bank offers a merchant-related reward such as a gift card, orwhen a merchant or affiliated Bank offers a reward for using aparticular credit card with the merchant.

There is a recognized need in the financial services industry to attractand retain loyal customers. A loyal customer is one who uses a singleBank for all or a significant number of banking relationships and doesso over an extended period of time. This need is particularly importantto Banks in small and medium sized communities where regionally andnationally marketed financial services have attracted customers awayfrom local institutions. This need is also important to Banks thatcompete in small and medium-sized communities to attract customers, andalso to Banks that compete in highly competitive markets where customersare offered a wide variety of investment and other banking relationshipoptions, some of which may individually be very enticing to existingcustomers of other banks.

Thus, incentive reward programs for rewarding customers, particularlyrepeat or ongoing customers, have become increasingly common in avariety of industries. Well known examples of the use of incentives toattract and reward repeated customer patronage are airline frequentflyer programs. In airline frequent flyer programs the customer isawarded points, often expressed in terms of “miles traveled” for eachuse of a particular airline or its partners or affiliates. Additionalpoints or “miles” are awarded for use of ancillary services such as carand hotel room rentals. Other examples of customer incentive programsinclude the trading stamp programs once popular in the grocery retailtrade.

The implementation of a customer incentive program for Bank customershas complexities not found in customer incentive plans in otherindustries. The relationships between the Bank and any customer may bequite numerous and complex, involving a number of different kinds ofaccounts and interactions. Most other incentive programs requiretracking of only one customer factor such as miles traveled in afrequent flyer program or the total dollar volume of purchases in agrocery store trading stamp program.

There can exist a great deal of variation among Banks in the types offinancial services offered and emphasized. In particular, differentBanks may wish to establish different scoring systems for the varioustypes of consumer-bank relationships and consumer behaviors, dependingon which relationships and behaviors are found to be the most profitableby the Bank, Bank partners, and third parties who offer rewards to Bankcustomers. Further, each Bank may wish to establish a different awardstructure of incentives, depending upon that Bank's perception of thebenefits of the program in relation to the costs of the incentives andthe needs of its particular community.

Furthermore, for an incentive program to be fully effective as a toolfor attracting and retaining long-term customers, it is desirable forthe Bank's management to be able to monitor customer behaviors and therelationships between the Bank and its customers, as individuals and asgroups. The Bank may thus be able to identify significant opportunitiesfor marketing its financial services by evaluating customer behaviorsand relationships and the appeal of those behaviors and relationships tocustomers.

To these ends, Banks have developed a wide variety of rewards programsto attract and retain customers. Typically, a reward program of afinancial product such as a credit card will allow customers to earnrewards in a predetermined rewards system. There is typically one typeof reward, a base reward, and one type of method of earning the reward.For instance, some Banks offer a 1% cash rebate each time a customeruses a platinum credit card issued by the Bank. Other incentive rewardsprograms may offer a reward in the form of reward currency, such asfrequent flyer miles or points, which can be used to purchase otherrewards or benefits.

Further, the universe of reward-earning behaviors for such rewardsprograms is limited. Rewards are typically earned by charging moretransactions on a credit card account. Special rewards also may beearned by purchasing from a particular Bank partner (“Partner”).Finally, rewards can be earned by accomplishing certain tasks orexhibiting certain behaviors, such as by opening a bank account.However, prior art reward systems typically cannot differentiatetransactions (or other reward-earning behaviors) beyond these limitedcriteria of dollar amount and merchant.

Thus, prior art rewards programs typically have limited reward-earningbehaviors that earn limited rewards. While Banks have successfullyencouraged cardmembers to use their credit cards by offering a rewardsprogram associated with the card, Banks typically do not continuallyprovide additional promotional rewards programs targeted to specificcustomers or groups, wherein rewards are earned through specifictriggering behaviors. What is needed is a robust and efficient system ofoffering a plurality of promotional rewards programs to individualcardmembers or classes of cardmembers, wherein the rewards programsenable customers or customer groups to earn a variety of rewards byaccomplishing a variety of behaviors and/or transactions. It is furtherdesirable to have a rewards program system that is customizable across awide variety of variables.

BRIEF SUMMARY OF THE INVENTION

Generally speaking, the foregoing needs are fulfilled by providing inone exemplary embodiment a system and method for providing promotionalrewards. First, a promotional reward is communicated to a customer. Thepromotional reward offer comprises a promotional reward associated witha promotional reward-earning behavior and a promotional time frame. Theoffer may specify a customer population, and the customer may beenrolled in the promotional reward program if the customer is determinedto be in the population. The customer is credited a promotional rewardif the customer accomplishes the promotional reward-earning behaviorwithin the promotional time frame. The customer may also be enrolled ina base reward program, and the promotional rewards may be accumulated ina customer account along with the base rewards.

In another embodiment, a system is provided for implementing apromotional rewards program. An offer setup processor generates offersfor one or more promotional rewards programs. Each promotional rewardsprogram enables one or more customers to earn one or more rewards byaccomplishing one or more specific reward-earning behaviors during aspecific time frame. The one or more customers are also enrolled in abase rewards program. An enrollment processor enrolls customers into oneor more promotional rewards programs by processing offer data andcustomer account data. A qualifying processor processes customertransaction data to determine whether a customer transaction earns areward pursuant to an offer.

In yet another embodiment, a computer-readable medium encoded withcomputer program code is provided for implementing a promotional rewardsprogram. A customer is offered promotional reward earnings that can beaccumulated in a customer rewards account pursuant to a promotionalrewards program. Promotional reward earnings and base reward earningsare accumulated in the customer rewards account. The promotional rewardearnings are accumulated pursuant to the promotional reward program, andthe base reward earnings are accumulated pursuant to a base rewardprogram.

Other embodiments could be considered.

DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates the process flow of a typical rewards engineaccording to the prior art.

FIG. 2 shows a flow chart of a promotional rewards engine according toan embodiment of the present invention.

FIG. 3A illustrates a promotional rewards engine system according to anembodiment of the present invention.

FIG. 3B illustrates additional features of the promotional rewardsengine system of FIG. 3A.

DETAILED DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates the process flow of a typical rewards engineaccording to the prior art. First, a rewards program system is createdin step 1. The systems and processing environments at the Bank, the cardprocessor, and the Bank Partners are established for processing therewards functions. Rules defining the reward program are specified. Forinstance, it may be specified that all platinum credit cardmembers willreceive a 1% cash rebate for all platinum credit card transactions.

In step 2, a cardmember (or cardmember population) is enrolled in thereward program.

In step 3, enrolled customers earn and accumulate rewards according tothe rewards program earning rules. To earn and accumulate rewards, therewards engine receives information relating to customer transactionsthat earn rewards.

In step 4, an earned reward is redeemed, and the reward is removed fromthe customer's account.

In step 5, the reward is fulfilled, and the customer actually obtainsthe reward. In the case of a rebate check, fulfillment occurs when thecheck is actually printed and mailed, or otherwise delivered ortransferred to the customer.

In step 6, the customer reward and/or account is serviced. This maycomprise any actions taken with regard to customer service or otherwiseensuring that the customer appropriately received the reward, orotherwise ensuring that any of the prior steps took place properly. Forinstance, a reward may be serviced when a customer calls to complainthat the reward was never received, or that an inappropriate amount wasdebited from a reward account.

In step 7, the Bank may audit or otherwise monitor the rewards program.

It should be noted that in the prior art method of FIG. 1, a customeraccount is enrolled in only one rewards program at a time.

FIG. 2 shows a flow chart of a promotional rewards engine according toan embodiment of the present invention.

The assignee of the present invention has developed a Bank customerincentive program called the “Promotional Rewards Engine” that greatlyimproves upon the prior art. The Promotional Rewards Engine (“PRE”) is asystem that processes promotional rewards offers to existing creditcardmember populations. The PRE allows a Bank (and/or the marketingdepartment of a Bank) to offer one or more additional rewards earningopportunities to credit cardmembers.

Through the PRE, a Bank offers rewards programs to existing Bankcustomers so that the customers may earn rewards by performing specificbehaviors during a specified time frame. As used herein the term “Bank”is intended to mean all types of financial service institutions,including banks, savings and loan associations, credit unions, creditcard issuers, and the like, which offer a variety of financial andinvestment services to customers, such as credit cards; “triggeringbehaviors” refers to credit card purchases, other account activity, andother consumer behaviors that can trigger the earning of rewards in arewards program; and the term “reward” is intended to mean some type ofconsideration or recognition established and given by the Bank, theBank's partners, or third parties to the customer in recognition of thecustomer's specific behaviors in the specific time frame, such as gifts,cash rebates, and frequent flyer miles.

A portion or all of the Bank's customers may be enrolled orparticipating in any given program, depending on the eligibility rulesof the program. A rewards database stores customer-specific rewardinformation for each customer enrolled in the Promotional RewardsProgram. Rewards such as rewards currency are automatically calculatedbased on the triggering behaviors performed by the customer, and earnedrewards are awarded either upon demand of the customer, or automaticallyon an immediate or periodic basis. The point awards may be increaseddepending on the rules defining the reward program.

The PRE may interface with a Bank Partners' loyalty and rewards systems.For example, the PRE has the capability to offer and process rewardsthrough a Bank Partner's rewards system, and/or to offer and process aBank Partner's rewards program through the PRE system.

The PRE system may be used for any customer or group of customers thathave an account with or associated with a Bank. Such accounts may or maynot be associated with physical cards, such as plastic credit cards witha magnetic stripe. Accounts may comprise smart card accounts, accountsassociated with a radio frequency identification device such asSpeedpass™ and EZ Pass™, accounts associated with cardless payments(wherein a cardless account with a user name and alias is associatedwith another cardmember account), virtual accounts (such as one-time useaccounts set up for a special purpose), or other transaction accounts.Such non-traditional accounts may have non-traditional “cards” or otheridentifiers associated with them. For purposes of the invention, suchidentifiers are considered cards associated with the account.

In step 202 of FIG. 2, the Bank administers a base rewards program.Alternately, the base rewards program could be administered by anotherentity, such as a Bank Partner or third party. The base rewards programmay be implemented by a Promotional Rewards Engine (PRE), as referencedabove. Customers are enrolled in a rewards program associated with acustomer account. Customers may choose from among a variety of rewardsprograms for a particular customer account. The rewards program isassociated with one or more earning behaviors (such as transactions) andone or more rewards which can be earned through those behaviors.

In optional step 204, the PRE receives Partner rewards program data. ThePRE is configured to manage the Bank rewards program as well as therewards program of Bank Partners who do not manage their own customerrewards earnings and fulfillment processes. Thus, step 204 occurs whenthe PRE is managing one or more Bank Partner rewards programs. The PREthen handles the management of the Partner rewards program in accordancewith the rules governing the Partner rewards program. Depending on thearrangement with the Partner, the method may then proceed to steps 206,208, and/or 212.

In step 206, the Bank creates its promotional rewards program, includingthe rules defining the program. The rules may be any of the rulesdescribed herein, including rules governing the offer, reward, andeligible population.

In step 208, the PRE creates and stores the offers and rewards. Theseoffers and rewards may be created by the Bank Interface 76 and CreateBank Offer & Partner Offer Modules 40, 42 of FIGS. 3A & 3B, as describedbelow. The offers and rewards information may be stored in the OfferDatabase 20 of FIGS. 3A & 3B.

In optional step 210, the PRE communicates the offers and rewards to thecustomers. It may also report the offer and reward information forinternal or external auditing purposes. For instance, it may report theinformation to an internal data collection module such as the ReportModule 70 and/or Bank Interface 76 of FIG. 3B. The customers maycomprise Bank customers having accounts with the Bank. The customers mayalso comprise Partner customers, if the PRE has received Partner rewardsprogram information in step 204. Communication with the customer canoccur via any means described in FIGS. 3A and 3B.

In step 212, the PRE enrolls customers in customer reward accounts. Theaccounts are created and stored, preferably in a database. Each rewardaccount may be associated with an existing customer account. More thanone reward account may be associated with a single customer account.Each reward account may be associated with one or more rewards.

In step 214, the PRE may communicate reward account information to thecustomer. It may also report the reward account information for internalor external auditing purposes. For instance, it may report theinformation to an internal data collection module such as the ReportModule 70 and/or Bank Interface 76 of FIG. 3B. Such account informationmay comprise a description of the reward program, the number of theaccount, and the balance of the reward account. For new accounts, thebalance may be zero. There may be a positive balance if the customer isautomatically given an initial reward upon enrollment in the rewardsprogram. For instance, a customer who signs up for a checking accountmay automatically receive a free $5 gift certificate to a Partnerretailer, in which case the reward account created for that customerwould have a positive balance. The reward account balance may also bepositive if it is not a new account, but rather if it is converted fromanother reward account or portfolio. If the old account had a positivebalance, then the new, converted account would carry over a balance. Inthese cases, the reward balance may need to be converted. For instance,if the prior balance was a number of merchant points, but the convertedaccount offers only frequent flyer miles, then the points may beconverted into miles.

In step 216, the PRE monitors customer transactions and behaviors inorder to determine reward earnings. As defined by the reward program,specific transactions and/or behaviors may earn rewards.

In step 218, the PRE accumulates earnings to the customer reward accountbased on the customer's reward earning transactions and behaviorsmonitored in step 216.

In optional step 220, the PRE communicates the reward earnings to thecustomer. It may also report the earnings information for internal orexternal auditing purposes. For instance, it may report the informationto an internal data collection module such as the Report Module 70and/or Bank Interface 76 of FIG. 3B.

In optional step 222, the PRE may exchange one or more customer rewardsfor one or more other rewards. This may be at the request of a customer,for example if the customer wants to switch reward programs or rewardtypes.

In step 224, the rewards are fulfilled. A reward may be delivered to acustomer, credited to a customer account, provided to a Partner or thirdparty who will provide the reward to the customer, or otherwise providedto the customer.

In optional step 226, the PRE communicates the fulfillment of thereward. The PRE may also debit the reward from the customer's rewardaccount. It may also report fulfillment information for internal orexternal auditing purposes. For instance, it may report the informationto an internal data collection module such as the Report Module 70and/or Bank Interface 76 of FIG. 3B.

The method described above in FIG. 2 may also include features of thePRE as described in FIGS. 3A and 3B. For instance, the communicatingand/or reporting steps 210, 214, 220, 226 of FIG. 2 may be accomplishedby the Communication Module 64 and/or the Reporting Module 70 via any ofthe communication methods described for those Modules 64, 70, or anyother communication means described herein. The rules defining theoffers in step 206 may comprise any offer rules as described herein,such as with respect to the Bank Interface 76, the Create Bank OfferModule 40, and the Create Partner Offer Module 42. The steps ofmonitoring transactions and behaviors 216 and accumulating rewards 218may comprise the operations described with respect to the InterrogateReward Account Behaviors and Transactions Modules 48, 50 and the OfferQualification Module 52, and other associated modules, as describedbelow for FIGS. 3A & 3B.

FIGS. 3A and 3B show the Promotional Rewards Engine (PRE) according toone embodiment of the invention.

As shown in FIG. 3A, the Bank Interface 76 may pass rules and otherinformation to the Create Bank Offer Module 40, the Create Partner OfferModule 42, the Offer Database 20, the Create Rewards Account PopulationModule 44, the Create Partner Rewards Account Population Module 46, theInterrogate Reward Account Behaviors Module 48, the Interrogate RewardAccount Transactions Module 50, the Offer Qualification Module 52, theOffer Fulfillment Module 54, the Fulfillment Reconciliation Module 56,the Communication Module 64, and the Report Module 70. The BankInterface 76 may generate these rules and information or receive themfrom the Bank. The rules may govern and/or define the Bank's and/or BankPartners' rewards program(s) by governing and/or defining the operationof the Modules 40, 42, 44, 46, 48, 50, 52, 54, 56, 64, 70 and OfferDatabase 20. The various rules are described further in conjunction withFIG. 3B.

FIG. 3B shows the PRE of FIG. 3A in greater detail. In the PRE system,any of the Processors 20, 22, 24, 26, 28, 58, 60, 62, 66 & 68 andModules 40, 42, 44, 46, 48, 50, 52, 54, 56, 64, & 70 may comprise aprocessor, database, and suitable inputs and outputs for communicatingwith other processors. For instance, a processor or module may comprisea computer, a computer program, a server, or other appropriate dataprocessing device. Some of the PRE system components may share the samehardware. For example, one computer may be one or more elements of thePRE.

Still referring to FIG. 3B, the Bank Interface 76 may pass rules orother information to the Modules as described above. A rule may compriseany instruction, parameter, macro, subroutine, program, or any otherinstruction set that may apply to one or more customers or populationgroups, one or more rewards or reward programs, any other feature asdescribed below, or any other feature defining a Bank or Partner rewardprogram. For instance, the rules may change the accumulation rules of arewards program used by the Interrogate Reward Account Behaviors andTransactions Modules 48, 50 to accumulate customer rewards.

The Bank Interface 76 may change (or provide rules which change)relationships between the Bank and its Partners, between a customer andany rewards programs associated with the customer, or between thecustomer and the Bank. For instance, the Bank Interface 76 may changethe rules defining a reward offered by a Bank or Partner rewards programto a customer or customer population. The Bank Interface 76 may specifythe rules governing reward program participation, program transfer,currency conversion, and redemption for specific customers, customergroups, and programs. The Bank Interface 76 may set up rewards currencyearning and accumulation algorithms based on defined business rules. TheBank Interface 76 may also setup rules governing the redemption andfulfillment of goods, services, and payments to be provided to customersas rewards.

The Bank Interface 76 may comprise (or be implemented by) a sub-entityof an issuing Bank, such as the marketing department of the Bank. TheBank Interface may also comprise multiple banks, multiple Bank Partners,or any combination thereof. For instance, the Bank Interface of the PREmay comprise a module that receives reward program information fromother banks and Partners. In this way, the PRE may manage the rewardsprograms of those other banks and Partners.

The Bank Interface 76 may quickly add new items to rewards catalogs(redemption sets). This is partly because the Bank Interface 76 mayprovide Bank representatives the ability to view and edit the rulesdefining and governing any of the Modules, including the Bank Interface76. Such authorized representatives may edit and view the Modules viaBank computer terminals, over the Internet, or via other channels.

The Bank Interface 76 may quickly incorporate new information from othermodules and databases to reflect program changes and new offers acrossservicing channels.

One advantage of having a separate Bank Interface 76 is that it may beconfigured to quickly add a new earning algorithm if the new algorithmis to be driven from data already driving other rewards currency earningalgorithms. For instance, the Bank Interface's 76 algorithm existsseparately and can therefore be modified separately from the data itacts upon. Thus, adding to, subtracting from, or otherwise modifying theModules 40, 42, 44, 46, 48, 50, 52, 54, 56, 64, and 70 minimizes time,cost, and administrative inefficiency.

The Create Bank Offer Module 40 and Create Partner Offer Module 42 applythe rules received from the Bank Interface 76 and thereby enable variousfunctions and capabilities related to the setup of the PRE andassociated rewards programs. These two Modules 40, 42 may operateseparately: the Create Bank Offer Module 40 receives and applies rulesand other information related to rewards programs that are created bythe Bank itself, whereas the Create Partner Offer Module 42 receives andapplies rules and other information related to rewards programs that arecreated by Bank Partners. For instance, the Create Bank Offer Module 40may receive rules related to an offer whereby customers in Alabama earn1% cash back for all purchases in July that are over $50. The CreatePartner Offer Module 42 may receive rules related to an offer whereby aPartner airline offers double frequent flyer points during the month ofFebruary for all Partner purchases.

The Create Offer Module 40 and Create Partner Offer Module 42 may set upa program as a set of accumulations rules and redemption options. TheModules 40, 42 may also define sets of one or more redemption items(redemption sets or collections) and add or delete items from anyredemption set. For example, the redemption items may comprise singleitem sets like Partner airline miles and premiums. Redemption sets mayalso comprise merchandise collections, sets of cash equivalents (checksand gift certificates), Partner airline miles, pre-defined travelpackages, and Partner merchant coupons.

The Modules 40, 42 may add or delete any redemption item or redemptionset to or from any reward program and control the capabilities andallowable combinations of the redemption through business rules. Forexample, the Bank Interface 76 may add a cash rebate option to multiplerewards programs or offer travel options to premium rewards accounts, orit may offer the redemption of airline Partner miles to customers whoalready have a different option.

The Modules 40, 42 may define sets of rules for earning rewards currencyand/or rewards under a program's earnings and accumulation requirements.The Modules 40, 42 may also specify attributes or characteristics thatlimit or define the events, transactions, and behaviors (“triggeringevents”) for which a customer earns a reward or rewards currency. Thoseattributes may comprise transaction date, time, location, frequency,amount, and other triggering attributes.

The specific triggering events are defined according to the specificoffer, i.e., the rules defining the offer provided by the Bank Interface76. An offer may be classified according to: offer type or subtype;offer delivery channel (i.e., how the offer is communicated to thecustomer, which may comprise any means of communicating with thecustomer described herein); offer response channel; start time; endtime; offer campaign; internally or externally provided population orpopulation criteria; transaction type; frequency of a specific type oftransaction; frequency of total transactions; amount of one or moretransactions; minimum transaction amount for triggering earning areward; maximum transaction amount for earning a reward; earning cap;variable or fixed reward amount; reward amount (or conversion factor, ifbased on a transaction amount); reward identifier; redemption type(automatic, on-demand, or at a certain date); customer account status(such as closed, frozen, bankrupt, revoked, or otherwise in badstanding); merchant description of the transaction; number of operativetime periods; number of tiers (if the offer is a tiered offer); andPartner. For instance, the Create Bank Offer Module 40 may define a ruleenabling customers to earn rewards based on the size of their homeequity line of credit or credit card balance in one or more rewardsprograms. The Create Partner Offer Module 42 may specify one or morePartner rewards that will be earned upon one or more triggering events.

The Modules 40, 42 may create additional rules and information based onthe rules and information received from the Bank Interface 76. Theadditional rules and information may comprise rules defining an offerand reward of a reward program. The Modules 40, 42 may pass theircreated rules and information to the Offer Database Processor 20. Asnoted above for all Modules, the Offer Database Processor 20 mayalternately receive these rules and information directly from the BankInterface 76.

The Create Offer Module 40 may generate Bank rewards, offers, rules, andother information. It is configured to pass this information to theCreate Rewards Account Population Module 44. Similarly, the CreatePartner Offer Module 42 may generate Partner rewards, offers, rules, andother information. It is configured to pass this information to theCreate Partner Rewards Account Population Module 46.

The Create Rewards Account Population Module 44 may also receive rulesand information from the Offer Database Processor 20. For instance, theCreate Reward Account Population Module 44 may receive rules or otherinformation defining the population eligible to participate in aparticular rewards program. Similarly, the Create Partner RewardsAccount Population Module 46 may also receive rules and information fromthe Offer Database Processor 20. For example, the Create Partner RewardsAccount Population Module 46 may receive rules or other informationdefining the population eligible to participate in a particular Partnerrewards program.

The Create Rewards Account Population Module 44 and the Create PartnerRewards Account Population Module 46 receive rules defining a populationeligible for a Bank or Partner reward program, respectively. Forinstance, in the Alabama 1% rebate example described above, the CreateRewards Account Population Module 44 may receive a rule specifying thatthe eligible population is all Bank cardmembers who live in Alabama. APartner airline may offer double frequent flyer miles during the monthof February to anyone who has a Partner account, in which case theCreate Partner Rewards Account Population Module 46 may receive a ruledefining that the eligible population is everyone who has a Partneraccount.

The Modules 44, 46 are configured to receive population information froma variety of sources, including the Bank Interface 76 and the ExternalPopulation Data Processor 58. The External Population Data Processor 58collects population data information from the Bank Interface 76, thirdparties 78, and Partners 80. It passes the population data to theModules 44, 46.

The Modules 44, 46 may also receive population information from theAccount Data Processor 22, which stores customer account informationincluding population information such as customer addresses. The CreateRewards Account Population Module 44 and the Create Partner RewardsAccount Population Module 46 may also receive population informationfrom the Create Bank Offer Module 40 and the Create Partner Offer Module42, respectively.

Based on received population rules and population information (such ascustomer account information stored in the Account Data Processor 22),the Create Rewards Account Population Module 44 and the Create PartnerRewards Account Population Module 46 generate the populations eligibleto participate in Bank and Partner rewards programs, respectively. Forinstance, an offer may define a population as all customers in Alabama,and the Create Rewards Account Population Module 44 and Create PartnerRewards Account Population Module 46 may generate the population ofAlabama customers based on customer address data stored in the AccountData Processor 22 for each customer.

The Account Data Processor 22 stores and processes information relatedto customer accounts. Information stored by the Account Data Processor22 may comprise personal information about each customer and financialinformation related to the customer's account. Personal information fora particular cardmember may comprise the cardmember's name, address,social security number, hair color, height, weight, age, productpreferences, credit rating, personal information of other authorizedusers of the account, mother's maiden name, and/or any other personalinformation. Financial information related to a customer's account maycomprise the cardmember's account numbers with the bank, account numbersand other account information of a customer account with a Partner,activity on each account, and any other financial information. Accountactivity may comprise date, time, location, and amount information foreach transaction; transaction type; account payment histories; and anyother information account information for a customer 74. Accountactivity information is stored at the Account Data Processor 22 after itis received from the Transaction Data Processor 26, which receives suchtransaction information from the Transaction Data Module 27, whichreceives and stores customer transaction information. Any of the datastored in the Account Data Processor 22 may be used to determine whethercustomer behaviors earn rewards (i.e., whether a customer behavior is atriggering event). The data may also be used to determine whether acustomer is a member of a population.

The Account Data Processor 22 may provide rules-based access to specificfunctions and information of the Processor 22. For example, theProcessor 22 may only allow primary account holder customers 74 toredeem a reward, or it may allow only the controlling account for asmall business to redeem or change options of its enrolled programs.Other modules and databases such as the Offer Database Processor 20 mayalso provide rules-based access to their specific functions andinformation. For instance, it may not allow the Interrogate RewardAccount Transactions Module 50 the ability to overwrite an offer filestored at the Offer Database 20.

The Communication Module 64 may receive customer account information orother information from the Create Bank Offer Module 40, Create PartnerOffer Module 42, Create Rewards Account Population Module 44, CreatePartner Rewards Account Population Module 46, Interrogate Reward AccountBehaviors and Transactions Modules 48, 50, Offer Qualification Module52, Offer Fulfillment Module 54 56, and Bank Interface 76. For instance,the Communication Module 64 may receive names and/or logos of anyenrolled rewards programs, rewards/points/currency summaries of thoseprograms, a status report regarding earnings on a customer rewardaccount, or any other information associated with the programs from theOffer Qualification Module 52.

The Communication Module 64 may communicate information to the customervia the Internet, an account statement, proactive services, a voiceresponse unit, a customer representative (via phone or email), a welcomekit, acquisition offers, inbound telemarketing, outbound telemarketing,direct mail, or any other communication means described herein.

The Communication Module 64 may customize the customer's statements toinclude any customer account or reward account transaction, such astransaction history, reward earnings balance, reward earnings history,available reward programs or offers, rewards (such as earned coupons orrebate checks), or other information. For instance, the CommunicationModule 64 may communicate to a customer what the customer must do toearn a particular reward (such as the difference between the customer'scurrent transaction volume for a given month and the transaction volumethreshold necessary to earn a particular reward), and/or the additionalbehaviors that must be accomplished after that to earn a second reward(such as for a phased reward, described below). The customer statementsmay be on paper (via U.S. mail, for example). They also may be availableon a webpage or via any other communication means described herein. TheCommunication Module 64 may then integrate such information into accountstatements sent to the customer, or it may otherwise make suchinformation available to the customer. The Communication Module 64 maysend the customer the statement or enable the customer to access thestatement over a variety of channels, such as a Bank website over theInternet, which may be password-protected. Other channels may compriseemail, a customer service telephone number, a voice recognition unit, abank teller, an ATM, a merchant point-of-sale (“POS”) system, asignature debit payment system, and a PIN debit system. The customer mayalso communicate with the Bank via cell phone or PDA.

The Communication Module 64 provides for various capabilities andfunctions related to servicing the cardmember. For instance, the Module64 can communicate to the customer 74 the number, amount, or nature ofearned, redeemed, or fulfilled rewards.

The Communication Module 64 may provide information (or make informationavailable) to customers, advisors, and/or Bank representatives (such asa servicing department) to disclose the rules for any currencyconversion or any other rule.

The Communication Module 64 provides for various capabilities andfunctions related to communicating with a customer 74. The CommunicationModule 64 also generally provides for various capabilities and functionsrelated to offers and communication channels between and among the bank,bank affiliates, third parties, modules, databases, and customers 74.

Through the Communication Module 64, customers may access their accountsand/or redeem currency online or through other self-serve channels.Customer 74 may also change their redemption method online (or viaanother communication channel). For example, a customer 74 might changea redemption from automatic to on-demand. In automatic redemption, areward may be automatically removed from a customer account without anyaction by the customer. For a cash rebate, the rebate credited to theaccount may be deducted when a rebate check is mailed to the customer ina monthly statement letter. In on-demand redemption, earnings arededucted from the customer's account when requested by the cardholder.For instance, the rebates may accumulate in the customer's account untilthe customer requests a rebate check.

The rewards engine may verify the availability of rewards forfulfillment before deducting the reward earnings from the rewardaccount. For instance, the rewards engine may need to verify that a giftis available in inventory before the reward can be fulfilled anddelivered. This may occur when the Offer Fulfillment Module 54 receivesreward availability information from the Fulfillment Data Processor 68.

Customers 74 may opt in to various offered rewards programs through theCommunication Module 64. Offered rewards programs may be communicated tothe customer 74 via the Communication Module 64. For instance, theCommunication Module 64 may offer rewards promotions through productstatements, rewards statements, and other communication deliverychannels.

The Communication Module 64 may provide detail of earnings by specificqualification set or show currency earned for a specified type of event,transaction, or behavior that was set up with different qualifyingattributes and calculation methods. For example, the CommunicationModule 64 may show Partner purchase points, non-Partner purchases, orevent-based rewards.

The Communication Module 64 may produce periodic summaries of earnings,balances, and redemption activity that can be separate from or part ofproduct account statements. For example, the Communication Module 64 mayproduce a free-standing rewards statement.

The Communication Module 64 may access a customer's reward activitysummary through different channels. For example, it may be accessedthrough paper statement or online inquiry.

The Communication Module 64 may communicate to a customer via aPartner's or merchant's desired method. For instance, a desired methodmight be a Partner privileged mileage account Statement or a PartnerInternet portal's personalized site.

An advantage of the present invention is that new rewards accumulationmethods can be quickly and easily integrated into these Customer 74communication channels without specialized knowledge of the PRE system.For example, a new reward program may be displayed on a credit cardstatement, a demand deposit account (e.g., checking account) statement,or any other statement received by the customer. The customer could alsodownload such information over a computer, cell phone, or personaldigital assistant (PDA).

The customer 74 may interface with the Account Data Processor 22, theRewards Account Data Processor 24, and/or the Transaction Data Processor26. The Account Data Processor 22, Rewards Account Data Processor 24,and Transaction data Processor 26 are preferably all part of a Bankcomputer network. Preferably these Processors 22, 24, 26 communicatewith one another, for instance, to update account information stored atthe Account Data Processor 22 based on new transaction data received atthe Transaction Data Processor 26.

The customer may interface with the Account Data Processor 22 viaInternet, ATM, phone call, or any other method of communicating with aBank. The customer 74 may customize an individual account by inputtingcustomization information at the Account Data Processor 22 and/orRewards Account Data Processor 24. For instance, the customer may changepersonal information stored on the account such as the customer'saddress, or the customer may add another authorized user to a customeraccount. Multiple customers' accounts, such as all the accounts in afamily or business group, could be pooled for a particular reward ormultiple rewards. For instance, in a pooled account, earnings frommultiple customers could be accrued together toward a particular reward.Alternately, the customer 74 may input such information at an accesschannel that transfers such information to the Account Data Processor22, Rewards Account Data Processor 24, or Transaction Data Processor 26.An access channel may comprise a Bank customer service department, aBank, a Bank website or other Internet website affiliated with the Bank,an ATM machine, or another communication channel.

The Account Data Module 22 may receive initial account setup data at thetime the customer is applying for the account. For instance, the AccountData Module 22 may receive the customer's name and other account-relatedinformation, and the Account Data Module 22 may assign the customer anaccount number. The Account Data Module 22 may also associate one ormore rewards programs with the customer, e.g., when the Create RewardsAccount & Partner Rewards Account Population Modules 44, 46 determinethat a particular customer qualifies for a particular offer.

The Offer Database Processor 20 receives offer and reward instructionsand information from the Bank Interface 76, the Create Bank Offer Module40, and the Create Partner Offer Module 42. The Offer Database Processor20 stores this offer and reward information. Preferably, the OfferDatabase Processor 20 stores each offer. The Offer Database Processor 20may allow, disallow, or require participation in a specific rewardprogram depending upon other Partner or brand affiliations associatedwith the account. For instance, if a customer has an account enrolled ina frequent flyer reward program with one airline, the Offer DatabaseProcessor 20 may prevent the account from enrolling in a similar programwith another airline.

The Create Rewards Account Population Module 44 and Create PartnerRewards Account Population Module 46 request and receive informationregarding offers, rewards programs, and rewards from the Offer DatabaseProcessor 20 (or directly from Bank Interface 76). For instance, theModules 44, 46 may receive information regarding an offer wherein allBank or Partner platinum credit card account holders may earn doublefrequent flyer miles for all purchases in February. The Modules 44, 46receive customer account information from the Account Data Processor 22.For instance, the Modules 44, 46 may receive the account numbers of allcustomers who have Bank platinum credit card accounts. The ExternalPopulation Data Processor 58 communicates with the Bank Partners 80 andthird parties 78 to receive external population data, which it passes tothe Modules 44, 46. External population data may comprise informationregarding accounts with Partners. The Modules 44, 46 may also receivespecific rules or instructions from the Bank Interface 76. For instance,during the month of February, the Modules 44, 46 may receiveinstructions that any Bank or Partner platinum credit card accountsalready associated with a non-Partner airline must be disqualified fromthe offer.

In a preferred embodiment, the Modules 44, 46 receive rules defining apopulation eligible for a Bank or Partner reward program, respectively.For instance, in the Alabama 1% rebate program described above, theCreate Rewards Account Population Module 44 may receive a rulespecifying that the eligible population is all cardmembers who live inAlabama.

The Create Rewards Account Population Module 44 and Create PartnerRewards Account Population Module 46 process population information andcreates populations for the rewards programs. A population may compriseone or more customers who, based on the rules and criteria defining aparticular offer, qualify for a particular rewards program associatedwith the offer. For instance, the population may comprise the set of allBank platinum credit card account holders whose accounts are notassociated with a non-Partner airline. The Modules 44, 46 may alsoenroll such populations in the rewards program. The Modules 44, 46process this information and create an account for each individualcustomer who qualifies for a particular rewards program offer. When theModules 44, 46 enroll a customer in a rewards program, they may passsuch enrollment information to the Communication Module 64, which maycommunicate such enrollment to the customer 74.

The Modules 44, 46 may create an account for each qualifying customer(such as each customer determined to be in the population) and pass thisinformation to the Account Data Processor 22 and Rewards Account DataProcessor 24. For instance, if the population comprises all customerswho live in Alabama, the Create Rewards Account Population Module 44 maycreate a rewards account for each cardmember who lives in Alabama. Therewards account would be passed to and stored in the Rewards AccountData Processor 24.

The Rewards Account Data Processor 24 stores information regarding eachcustomer rewards account. For instance, the Processor 24 stores thecustomer name and account number(s), the rewards account name(s) andnumber(s) associated with each customer account (there may be more thanone rewards account associated with a particular customer account), theaccumulation rules of the rewards account, the type of rewards, rewardbalance, fulfillment information, reward history, and any other reward-or reward account-related information.

Different rewards programs have different enrollment systems andmethods. For some rewards programs, cardmembers have the opportunity toenroll in the program at any time after the account is established. Toaccomplish this, customers may express a desire to enroll in the programby interfacing with the Account Data Processor 22, the Rewards AccountData Processor 24, and/or the Transaction Data Processor 26. Customersmay input appropriate information at one or more of the Processors 22,24, 26 in any method as described herein, such as via a customer servicephone number or the Internet. The Processor 22 may pass this informationto the Modules 44, 46 on a regular basis, such as immediately or at theclose of business every day. Then the Modules 44, 46 may continue toenroll such qualifying customers as they input their preference toenroll at the Processor 22.

This ability to enroll can be limited according to the customer,customer group, and program based on configurable rules. The Modules 44,46 may receive these rules in any method described above. For instance,as described above, the Modules 44, 46 may receive instructions to limitan offer to customers who hold a platinum account.

Via any communication channels described above, customers may be offeredthe option to enroll in a reward program at the time of applying for aparticular Bank or Partner account. For instance, a customer may applyfor an account at the Account Data Processor 22, and the Processor 22may immediately offer the customer to enroll in any account for whichthe customer qualifies but has not yet entered. There may be specialoffers tailored only to customers opening new accounts. Customers mayalso be capable of opting out of a particular program by entering suchpreference at the Account Data Processor 22, and during the opt-outprocess they may be offered another rewards program. The Account DataProcessor 22 may be configured to automatically offer the customeranother rewards program for which the customer qualifies but has not yetbeen enrolled.

The Create Rewards Account Population Module 44, the Create PartnerRewards Account Population Module 46, the Account Data Processor 22, andthe Rewards Account Data Processor 24 may transfer a customer's orcustomer group's participation in one program (or multiple programs) toparticipation in another program (or programs). Alternately, the Modules44, 46 and Processors 22, 24 may enable the customer or customer groupto choose to transfer.

The Create Rewards Account Population Module 44, the Create PartnerRewards Account Population Module 46, the Account Data Processor 22, andthe Rewards Account Data Processor 24 may establish currency conversionrules for the switch or transfer, so that rewards or points accumulatedin one or more programs can be converted to the different rewards orpoints offered in the other program(s). To facilitate conversion, auniversal unit may be used to measure each reward, such as a dollarvalue, so that dissimilar rewards can be easily converted into eachother. The Create Rewards Account Population Module 44, the CreatePartner Rewards Account Population Module 46, the Account Data Processor22, and the Rewards Account Data Processor 24 may specify allowableprogram transfer pairs. For instance, the program may allow frequentflyer miles from an airline to be converted to cash rebates or rentalcar discounts, but it may disallow the conversion of one airline'sfrequent flyer miles to another airline's frequent flyer miles, or viceversa.

The PRE may allow for terminating a program and de-enrolling one or morecustomers from a program. For instance, the Bank Interface 76, theAccount Data Processor 22, and Modules 44, 46 may terminate a programand de-enroll one or more customers according to rules received. Theymay also specify the disposition of any accumulated rewards or currency.Accumulated currency may be converted into a reward or currency inanother reward program as described below, or it may be lost uponde-enrollment. The Bank Interface 76 may also directly terminate aprogram or de-enroll customers by inputting information at the AccountData Processor 22.

The Create Rewards Account Population Module 44 and Create PartnerRewards Account Population Module 46 may enable accumulating rewardsearnings from activity in accounts in different lines of business to asingle customer rewards account. The Modules 44, 46 receive Partner 80and third party 78 account data from the External Population DataProcessor 58. The Modules may also receive population data from theInternal Customer Population Processor 82, which stores Bank customerdata, or directly from the Bank Interface 76.

The Modules 44, 46 may identify and assign customer membership numbersin any or all Partner rewards or loyalty programs, which it can passback to the Partners 80 via the External Population Data Processor 58.For instance, the Modules 44, 46 may receive Partner loyalty files andassign numbers to those files. The Modules 44, 46 may capture and trackthose numbers, and the numbers can be displayed through variouschannels, such as various bank branches. The Modules 44, 46 may captureand/or track any and all Partner loyalty numbers, whether from Partnersor non-Partners.

The Modules 44, 46 may assess and validate which customers are eligiblefor enrollment or access to a product, service, or feature based onpredetermined rules. The Modules 44, 46 may also synchronize appropriatecustomer or member identifiers among the Bank, Partners 80, and thirdparties 78. For example, the Modules 44, 46 can provide real-timesynchronization of a Partner airline frequent flyer number with anewly-acquired cardmember who holds a Partner frequent flyer account.This could enable embossing of the customer's account number onto thenew plastic credit card (or other physical embodiment associated with anaccount) immediately following the cardmember's decision to enroll.

The Modules 44, 46 may additionally be configured to verify a customer'senrollment in real time.

The Modules 44, 46 may recognize and process changes in award levelstatus in various Partner programs. For instance, a Partner may gobankrupt. The Bank Interface 76 may inform the Modules 44, 46 that thePartner went bankrupt by providing rules determining, for example, howto modify each Partner reward account. For instance, the Bank Interface76 may specify how to convert earnings of the Partner account intoanother reward with a different Partner.

The Interrogate Reward Account Behaviors Module 48 and InterrogateReward Account Transactions Module 50 process data to match triggeringevents with customer reward accounts. The Modules may receive triggeringevent information from the Offer Database Processor 20, the Account DataProcessor 22, or the Rewards Account Data Processor 24. The Modules 48,50 may also receive account data and rewards account data from theAccount Data Processor 22 and the Rewards Account Data Processor 24.

The Interrogate Reward Account Behaviors Module 48 receives behaviordata from the External Behavior Data Processor 60. The External BehaviorData Processor 60 stores information relating to customer behaviors. Forinstance, the Processor 60 may receive and store information relating tocustomer transactions at a Partner airline or hotel, which may or maynot be otherwise stored in the system. The Processor 60 may also receivecustomer behavior information such as spending a week at a Partnerhotel.

The Interrogate Reward Account Transactions Module 50 receives customertransaction information from the Transaction Data Processor 26, whichstores transaction information for customer transactions involving acustomer account. The Transaction Data Processor 26 receives Banktransaction data from the Transaction Data Module 27. The TransactionData Module 27 may comprise a database that receives and stores alltransactions on Bank-related accounts. For instance, the TransactionData Module 27 may receive and store all transactions for all Bankcustomer credit cards, debit cards, and other accounts. The customer mayalso process transactions directly through the Transaction Data Module27, e.g., via secure online payments wherein the transaction informationfeeds directly into the Transaction Data Module 27.

The Interrogate Reward Account Transactions Module 50 receives externaltransaction data from the External Transaction Data Processor 62, whichstores customer transaction information that may not involve a customeraccount. External transaction data may comprise transaction data fromPartners.

The Interrogate Reward Account Behaviors Module 48 receives rewardaccount data from the Rewards Account Data Processor 24 and customerbehavior data from the External Behavior Data Processor 60.

For instance, the Interrogate Reward Account Transactions Module 50 maydetermine from the Rewards Account Data Processor 24 that a customer isenrolled in XYZ rewards program. The Module 50 may then pull the XYZprogram data from the Offer Database Processor 20 and discover that theXYZ program enables customers to earn a small gift for every platinumcredit card transaction that has an amount over $50 during the month ofFebruary. The Module may then query the Transaction Data Processors 26,62 for all transactions that were over $50. The Module 50 may thendiscover that the customer made two purchases in amounts over $50 duringthe month of February. At this point, the Module 50 could send thisearnings information to the Rewards Account Data Processor 24.Alternatively, the Module 50 could pass this information to the OfferQualification Module 52, which may then determine if the activitiesshould earn rewards.

When the reward is part of a Partner reward program, such as frequentflyer miles or points for a Partner airline, the Interrogate RewardAccount Transactions Module 50 may pass the earnings information to theExternal Transaction Data Processor 62, which may pass the earningsinformation to the Partner rewards system. The rewards in the Partnerrewards program could then subsequently be processed by the Partnerrather than the PRE.

The Interrogate Reward Account Behaviors Module 48 operates similarly tothe Interrogate Reward Account Transactions Module 50, except itmonitors behaviors instead of Bank transactions.

Whether the Modules 48, 50 determine earnings or not, the earninginformation produced by the Modules 48, 50 is preferably passed to theOffer Qualification Module 52.

The Offer Qualification Module 52 processes this earnings data anddetermines any reward earnings. For instance, it may determine that acustomer did in fact make two purchases over $50 during the month ofFebruary, and therefore determine that the customer has earned tworewards. The Module 52 then checks with the External Suppression DataProcessor 28 to determine whether the customer account is eligible toearn rewards. A customer may be ineligible if the customer's account hasbeen suspended, closed, or delinquent, if too many transactions havebeen disputed, if credit card purchases have been returned and creditedback to the account, the account is in bad standing with the Bank, or ifthe account has any other feature that the Bank considers adverse. Ifthe customer account is eligible to earn rewards, then the Module 52would then instruct the Rewards Account Data Processor 24 to amend thecustomer's rewards account to reflect the earned rewards.

When a reward is earned, the Module 52 may also pass the earninginformation to the Communication Module 64, which can communicate suchinformation to the customer 74. The Module 52 may also pass the earninginformation to the Offer Fulfillment Module 54.

Some rewards programs may have earnings caps. The Bank Interface 76 mayoverride such earnings caps and making earnings adjustments to acustomer's rewards account.

In one embodiment, a customer may be enrolled in a points programwherein the customer may earn 1000 points for spending one weekend at aPartner hotel in the month of July. The Rewards Account Data Processor24 and the Offer Database Processor 20 may pass this information to theModule 48. The customer may then spend a July weekend at the Partnerhotel. The External Behavior Data Processor 60 may pass this behaviorinformation to the Module 48. The Module 48 may acquire and process thisdata, and finally pass it to the Offer Qualification Module 52. TheOffer Qualification Module 52 may generate instructions to add 1000points to the customer's rewards account. The Module 52 would then passthe instructions to the Rewards Account Data Processor 24, which wouldadd the points to the appropriate customer account.

Similarly, the Interrogate Reward Account Transactions Module 50processes rewards. The Module 50 receives rewards account data from theRewards Account Data Processor 24. The Module 50 receives externaltransaction data from the External Transaction Data Processor 62 andBank transaction data from the Transaction Data Processor 26. Banktransaction data may comprise any transactions that involved a Bankaccount (i.e., for which the Bank has a record). Transactions such ascredit card purchases or opening a savings account can also beconsidered behaviors, and they may be monitored by the InterrogateReward Account Behaviors Module 48. External transaction data maycomprise any transaction that does not involve a Bank account, e.g.,transactions involving Partner accounts.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50thereby interrogate customer behaviors and transactions to helpdetermine customer reward earnings, which may later be posted to theRewards Account Data Processor 24. The customer may be enrolled inmultiple rewards programs on the same or different accounts. Eachqualifying behavior or transaction will cause the Modules 48, 50 to postearnings to the customer's account(s). In this way, customers mayparticipate in and accumulate earnings in multiple rewards programssimultaneously. Participating cardmembers may earn stacked rewards forearning points in multiple programs. Stacked rewards are when multipleearning behaviors and/or transactions must occur to earn a reward; e.g.,by purchasing three round-trip airfares in one month, a customer mightearn double miles for each purchase and then a bonus 1000 miles formaking three purchases in one month. A reward program may offer a tie-inwith other programs so that certain behaviors or combinations ofbehaviors can earn bonus points or rewards. For instance, whilepurchasing a flight might earn 10,000 miles in one program and renting acar may earn a 2% cash rebate in another program, doing both on the sameweekend may earn an additional gift coupon through what is effectively athird tie-in rewards program. Such multi-tiered rules would be specifiedin the Rewards Account Data Processor 24, and the Modules 48, 50 wouldprocess the behaviors and transactions according to those stackedrewards programs. For instance, after a Module 48, 50 determines that abehavior earned a reward directly, it may inquire whether anycombination of existing reward behaviors or transactions would enableanother reward.

Through instructions from the Bank Interface 76 or another module, theModules 48, 50 may add additional earnings opportunities and criteria toexisting programs.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may allow the customer to purchase additional points in a bank's rewardprogram, preferably as specified by configurable rules. For instance,the Modules 48, 50 may have a customized rule allowing cardmembers topurchase 10,000 Marriott points for $200.

A customer may earn a reward or reward currency for the occurrence ofspecific triggering events, transactions, and behaviors related to aspecific bank product. For instance, customers may earn rewards forpayments, purchases, opening an account, first use of a product oraccount, cash advances, or another reward trigger in a demand depositaccount, credit card, or other bank product. However, the Modules 48, 50may also exclude a specific type of event, transaction, or behavior fromearning currency, in accordance with the rules of the offer as stored inthe Offer Database Processor 20.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may allow customers to qualify to earn currency for transactions,events, behaviors with specific sets of attributes like location, timeperiod, platform, frequency, merchandise category, merchant, thresholdor other trigger attribute. For example, customers may earn at differentrates depending on whether the purchase is from a particular Partner ornon-Partner, or other factors such as time of day or store location.Customers can be rewarded with escalating bonus points or rebates forrepeat purchases at specific merchants. Customers may receive anadditional 1% rebate on purchases over $500; or they may receive 1% onall purchases if monthly purchases do not exceed $1000, and 1.5% on allpurchases if purchases exceed $1000. Transactions with specificattributes may also be excluded from earning currency.

Preferably, the Interrogate Reward Account Behaviors and TransactionsModules 48, 50, alone or in conjunction with the Offer QualificationModule 52, may verify that specific customer transactions and behaviorsoccurred at a specific time and location according to an offer. Forinstance, if an offer grants rewards for transactions that occur eachday after 4 pm at a restaurant, the Modules 48, 50, & 52 should be ableto verify if a particular transaction fits this criteria and thereforeshould earn a reward or reward currency.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may offer “earnings sales” wherein customers earn currency at aspecified rate for trigger events (e.g., transactions and specificbehaviors) during a specific length of time. For instance, in the caseof a rewards program where customers earn points at a particular rate,such as 10 points per dollar purchased, customers may earn double pointson all purchases in the month of November.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may specify rules for expiration of earned currency balances for each ofthe specified earning categories of the program (i.e., categories basedon events, transactions, and behaviors). For instance, the Modules 48,50 may allow the customer to cash out earned currency, transfer orconvert the currency to another rewards program, or it may hold thecurrency active for a period of time specified in the rules. The Modules48, 50 may also specify rules for the disposition of currency balancewhen the status of the customer's account changes. For example, certainbehavior or account status may cause or enable the Modules 48, 50 tosuspend earnings accumulation.

Earnings may be capped for specific products, events, transactions, andbehaviors, and/or for attributes of the events, transactions, andbehaviors. The Modules 48, 50 may specify multiple caps for differentcriteria, and it may remove a cap if specific behaviors are met. Forexample, an exemplary rewards program may only allow a customer to earna maximum of 10,000 miles in a month and 50,000 in a year for a type ofcredit card account. Another exemplary program may allow customers toearn double or triple points in February up to $1,000. Yet anotherprogram might allow customers to earn only 5,000 points per year fordemand deposit account activity.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may automatically adjust earnings features based on changes in thestatus of a Partner program. For example, different earnings rates ormaximums may be determined based on the status of a Partner's business.For instance, earning rates and maximums may change for a Partner'sfrequent flyer program during certain blackout periods or periods ofpeak activity, or during when special conditions are met that arerelated to the Partner's business.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may give a customer a reward or rewards currency in return for referringa new customer to a specific product or type of account.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may allow users to earn different forms of reward currency. The Modules48, 50 may specify the form of currency (or other reward) earned by acustomer or group of customers. For example, it may specify dollars,points, miles, Partner currency (such as Disney™ Dollars), specificphysical items, or other rewards. The Modules 48, 50 may also allowcustomers to earn currency using different calculation methods andcalculation rates. For example, the calculation methods of differentprograms may comprise: lump sum, ratios, ratio with tiers, ratio atthreshold, or specific items. The programs may specify differentcalculation rates, such as 1 point for $1, or 1 point for $2.

Except for the function of interrogating reward behaviors andtransactions, the additional earning functions described above for theInterrogate Reward Account Behaviors and Transactions Modules 48, 50 mayalso be accomplished by the Offer Qualification Module 52.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50allows for the processing of various functions and capabilities relatedto the accumulation of rewards in a customer account. The Modules 48, 50may track earnings accumulation by amount earned in categories, or itmay track accumulation by a specific earnings rule. For example, theModules 48, 50 may track earnings from Partner purchases (as a category)as separate from bonus points and other rewards.

Customers may accumulate reward currency earned in multiple Bankproducts and/or external products into one or more reward currency banksor accounts. For example, customers may earn a special type of rewardsor points (“extraordinary rewards”) for credit card purchases and foropening a demand deposit account, and the earned points may be combinedin one extraordinary rewards points bank or maintained in two separatepoints banks.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may convert among forms of rewards currency to facilitate changingredemption options. To simplify conversion, all rewards (or all rewardsfrom a particular institution) may have a universal currency translationmethod, or accumulation may occur in an underlying universal currency.For instance, each reward may correspond to a specific amount ofuniversal rewards points, and rewards may be accumulated in units ofuniversal rewards points. This way, a customer may cash out a differentspecific reward according to its “price” in universal rewards points.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may allow a customer to accumulate earnings at a household level. Forinstance, if the household includes several Bank customers, earnings maybe accumulated and tracked in a single rewards account.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may link multiple accounts of the same (or different) product type toone rewards account. A fee may be waived or charged for this feature.For example, points may be funneled for multiple credit cards into onerewards account.

Rewards currency may be accumulated as soon as transactions and eventsare recognized, or they may be accumulated on a monthly account cycleprocessing. For example, earnings currency may be accumulated atmidnight after each day's purchases and behaviors are recorded.

If a suspended account is later reinstated, the Interrogate RewardAccount Behaviors and Transactions Modules 48, 50, and OfferQualification Module 52 may retro-actively accumulate earnings that weremissed due to the suspended status. Such rules or policies may provideadditional incentive to customers to improve the status of their accountand/or maintain their account in good standing.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50and Offer Qualification Module 52 may return or reverse the redemptionof rewards currency for a stored value. For instance, the Modules 48, 50may add, subtract, or otherwise change the points, miles, or other valuefrom a stored value card.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may suspend access to accumulated earnings. For example, this may occurif the reward earnings are the result of a fraudulent transaction.

Points may expire based on rules, which may relate to the date earned,account type, and other account information.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may transfer rewards currency to another customer rewards account. TheBank may charge a fee for the transfer.

The Interrogate Reward Account Behaviors and Transactions Modules 48, 50may redeem currency from programs run by non-Partners for rewards inBank affiliated programs. The Modules 48, 50 may also aggregate pointsfrom multiple programs. The Modules 48, 50 may cause the purchase ofrewards currency from non-Partners. Such a purchase of rewards currencyfrom third party rewards programs would require a relationship betweenthe Bank and those third parties to establish a fair method (andcurrency price) for buying and exchange rewards and points.

The Offer Fulfillment Module 54 allows for the processing of variousredemption capabilities and functions. The Module 54 receivesfulfillment data from the Offer Qualification Module 52. The Module alsoreceives external fulfillment data, such as Partner reward information,from the External Fulfillment Data Processor 66. The Module 54determines where to send the fulfillment of a customer reward and thensends it to the appropriate party. Monetary rewards are passed to theMonetary Gateway 32.

The Monetary Gateway 32 provides the customer with monetary credits orcash. For instance, the Monetary Gateway 32 may send the customer acheck via mail. It may also be able to charge them for shipping fees andother costs. Non-monetary, non-physical rewards such as points, miles,and stored value are passed to the Non-Monetary Gateway 34, whichdelivers such rewards to the customer, e.g., via a customer account. Forsome rewards, such as Partner points or miles, the Non-Monetary Gateway34 may pass the fulfillment information to the External Transaction DataProcessor 62 for external fulfillment. In the case of Partner miles, thePartner may pass the miles rewards directly to the customer's frequentflyer account with the Partner. Savings bonds, premiums, and otherfinancial rewards may be passed to the Federal Reserve 36 forfulfillment. The Federal Reserve may then send the customer a rewardsuch as a savings bond, Treasury bill, or other similar reward.

A fee may be charged to a customer for different offerings and/ordifferent combinations of features in rewards programs. For instance,the Account Data Processor 22 may charge a fee to a customer's 74account when the customer enrolls in a particular rewards account. Forinstance, a yearly fee of $10 may be charged for the ability to exchangea customer's earned rewards points for frequent flyer miles with a BankPartner. Such fees would be specified in the rules defining the offerand or the terms of the account, which may be specified by the BankInterface 76 and stored in the Offer Database Processor 20. Differentfees may be charged to different groups of customers for a givenfeature. For instance, platinum cardholders may have a reduced feecompared to regular cardholders.

The Monetary Gateway 32 may charge a fee for the use of differentredemption methods (e.g., automatic vs. on-demand). For instance, if acustomer chooses to use an automatic redemption, then the MonetaryGateway 32 may charge the customer's account through a regulartransaction at the Transaction Data Processor 26. The customer's accountwould then be debited by the appropriate amount as in a regular purchasetransaction. For instance, the Bank Interface may have a rule associatedwith a particular customer's rewards program wherein the on-demandredemption feature will cost $10 in shipping and handling every time thecustomer redeems a reward. When the customer 74 elects to redeem areward through the Communication Module 64 (or through anotherappropriate communication means, such as Rewards Account Data Processor26 and Account Data Processor 22), the Communication (or other) Module64 passes such request to the Offer Qualification Module 52 or the OfferFulfillment Module 54. From there, the reward fulfillment request ispassed to the appropriate fulfillment module 32, 34, 36, 38, 78, 80, andthe Monetary Gateway debits the customer's account. Here, thetransaction on the customer's account may contribute toward rewardearnings.

The Monetary Gateway 32 may enable the integration of credit cards andstored value cards (e.g., a combined credit and stored value card). Forinstance, when an award is posted to a customer account, the RewardsAccount Data Processor 24 may move the reward into a customer storedvalue account. Alternately, for stored value accounts with Partners andthird parties, the value may be added to the stored value accountthrough the regular processing of rewards through the Offer FulfillmentModule 54 and the stored value account provider (i.e., Third Party 78 orPartner 80). The customer may use the stored value according to therestrictions of the account. For instance, $10 of stored value on a Bankaccount may enable the customer to purchase $10 of goods or servicesfrom merchants who accept the Bank credit, whereas a $10 stored valueaccount at a Partner coffee retailer may only be valid towards thepurchase of coffee.

Physical rewards such as merchandise and gift certificates are passed tothe Merchandise Gateway 38. For instance, the Merchandise Gateway 38 maysend the customer a fluffy bear or a DVD player. Rewards that will befulfilled by third parties 78 or Partners 80 are passed to third parties78 or Partners 80, respectively. Finally, rewards may be passed to theExternal Fulfillment Data Processor 66 for external fulfillment, such aswhen the Bank has contracted with external parties to handle rewardfulfillment.

Once the reward is passed to the appropriate party for fulfillment, theOffer Fulfillment Module 54 may notify the Communication Module 64 ofthe status of the reward. The Order Fulfillment Module may also debitthe reward from the customer's account stored at the Rewards AccountData Processor 24.

When the reward is ultimately fulfilled by any of the above elements 32,34, 36, 38, 78, 80, those elements may communicate back to the OfferFulfillment Module 54 and/or the Fulfillment Data Processor 68 that thereward was fulfilled (i.e., that the reward was constructively deliveredto the customer). Upon receiving confirmation that a reward wasfulfilled (or not fulfilled) from elements 32, 34, 38, 78, & 80, theFulfillment Reconciliation Module 56 may notify the Offer FulfillmentModule 54 and the Fulfillment Data Processor 68.

The PRE also enables the effective management of physical rewardinventory through the Merchandise Gateway 38. The Merchandise Gateway 38may communicate with the Fulfillment Data Processor 68 (or theFulfillment Reconciliation Module 56) to exchange information related tothe inventory of certain rewards. The Fulfillment Data Processor 68keeps track of reward inventory. For instance, if the supply is verylow, then the Fulfillment Data Processor 68 may notify the appropriateparty at the Bank (such as the Bank Interface 76) of the delinquentsupply so that remedial measures can be taken, such as discontinuing thereward or acquiring more. The Fulfillment Data Processor 68 can thennotify the Offer Fulfillment Module 54 of the delinquent supply. TheReport Module 70 may also query the Fulfillment Data Processor 68regarding inventory and report such records to the Bank. If there isinsufficient rewards available to fulfill a reward request, then theOffer Fulfillment Module 54 can amend the Rewards Account Data Processor24 to reflect that the reward has not been processed. Alternate stepscan be taken; e.g., the customer 74 can be notified via 64, 22, 24, or26, and the customer can choose to switch to another reward.

Other information can be communicated between the Fulfillment DataProcessor 68 and the Report Module 70. The Report Module can output aFulfillment Reconciliation Report 72 that contains fulfillmentinformation such as information relating to inventory or summaryinformation about rewards processed and fulfilled during a specifictime. The Report 72 may be sent to any appropriate party at the Bank orto a Partner 80 or third party 78.

Redemption can be automatic or on-demand. Automatic redemption occurswhen a reward is provided to the cardmember automatically. For instance,if a reward program offered a 1% account credit for all purchases at aspecific retailer for one week, then 1% of the amount spent at thatretailer during that might be automatically credited to the cardmember'saccount. This may occur when the Offer Qualification Module 52 passesthe earnings information to the Rewards Account Data Processor 24. TheProcessor 24 may automatically credit the account (which is stored inthe Account Data Processor 22) as each qualifying purchase is made, orit may provide the credit at another time, such as at the end of themonth, according to the provisions of the reward program. Alternately, athird party, such as the merchant, may automatically provide the reward.For instance, the merchant may send a check in the mail to cardmembersin the amount of 1% of the qualifying purchases.

On-demand redemption occurs when cardmember action is required for thecardmember to redeem the reward. For instance, a gift reward may beprovided to cardmembers who purchase a particular product with aqualifying credit card, but the provisions of the reward program mayrequire that the cardmember mail the receipt and UPC code for theproduct to a specific address in order to claim the reward. The giftreward may then be mailed to the cardmember after the receipt and UPCcode are received at the address.

However, the financial transaction information received at theInterrogate Reward Account Transactions Module 50 and processed at theOffer Qualification Module 52 may include enough information for theOffer Qualification Module 52 (or appropriate Fulfillment Module, e.g.,Merchandise Gateway 38) to determine that a gift reward should bemailed. Alternately, the customer may qualify immediately, and thereforethe reward determination may bypass the Offer Qualification Module 52.For instance, a Partner 80 may determine that a particular customer orpopulation automatically qualifies for a particular reward. They maypass the reward and population information from the External Processor60, 62 to the Interrogating Module 48, 50. Because such rewards are ineffect “pre-qualified” by the Partner, the reward instructions may passthrough straight through the Offer Qualification Module 52 to the OfferFulfillment Module 54 for fulfillment of the approved award.

It should be appreciated that different rewards programs will havedifferent methods of redemption and fulfillment. Some rewards can befulfilled by the Bank, others by third parties and/or Partners of theBank. Some reward programs may provide for on-demand fulfillment, andsome may provide for automatic fulfillment.

The Offer Fulfillment Module 54 may “burn points,” i.e., hold auctionsto reduce accumulated points that the rewards-giver previouslypurchased, was obligated to purchase, or otherwise obtained, or tootherwise reduce the amount of accumulated rewards held or owned by areward-giver. For instance, the occurrence of a specified triggerbehavior or event may trigger automatic currency redemption. Forexample, a coupon or check may be redeemed when a specified number ofpoints accumulate, or upon an anniversary date, regular cycleprocessing, specific calendar date, or at another specified time. Theredemption method may be also changed from automatic to on-demand.

The Offer Fulfillment Module 54 may employ an underlying universalcurrency or (currency translation capability) to facilitate redemptionacross any reward program by any customer.

The Offer Fulfillment Module 54 may define sets of one or more items forwhich currency can be redeemed (or exchanged for value). The OfferFulfillment Module 54 may also add and delete items from any of theseredemption sets. Redemption sets may comprise merchandise collections,sets of cash equivalents (checks and gift certificates), Partner airlinemiles, pre-defined travel packages, Partner merchant coupons, or othertypes of rewards. The Offer Fulfillment Module 54 may further give anycustomer or group of customers access to redeem currency for items inone or more redemption sets. The Offer Fulfillment Module 54 may changecustomer access to different redemption sets over time to support newoffers. For example, the Offer Fulfillment Module 54 may allow acustomer to redeem currency (or another reward) for Partner airlinemiles, items in a merchandise collection, checks and gift certificates,Partner coupons, or other rewards. The Offer Fulfillment Module 54 mayoffer Partner points/miles as a redemption option in other rewardprograms. The Offer Fulfillment Module 54 may also enable any customerto redeem currency for any good or service, as specified and limited bythe rules defined by the Bank. These rules may be created by the OfferDatabase GUI (76) and stored in the Create Bank Offer Module or OfferDatabase Module.

The Offer Fulfillment Module 54 may limit access for a customer or agroup of customers to a single redemption set or collection throughdefinable rules. For example, the Offer Fulfillment Module 54 may offercustomers a preferred Partner airline credit card that earns onlyPartner airlines miles (as in the prior art), with no access to orawareness of any other redemption options.

The Offer Fulfillment Module 54 may specify the redemption method(automatic or on-demand) for a customer or a group of customers, tochange the redemption method through subsequent offers, and to allow orlimit this capability with business rules. For example, the OfferFulfillment Module 54 may set up customer to automatically redeemearnings for a competitor airline's miles or change the rewards programto allow customer to decide whether to redeem for the competitorairline's miles or redeem for items in a merchandise collection (withcurrency translation or exchange rate). The Offer Fulfillment Module 54may automatically redeem for a Partner bookstore coupon or let thecustomer choose to redeem accumulated currency for a Partner bookstorecoupon or for miles that will be transferred to a Partner airlineaccount.

The Offer Fulfillment Module 54 may offer a customer access to aspecific redemption set for a specific period of time. For example, theOffer Fulfillment Module 54 may give customers (who normally only haveaccess to travel redemption options) access to merchandise options tosupport an offer to burn points (point burner offer). A point burneroffer may comprise an offer, for a limited time, to redeem earnings fora golf club for 20,000 points instead of the usual 30,000 points.

The Offer Fulfillment Module 54 may maintain multiple collections ofredemption items in flexible catalogs and make such redemptionsavailable across multiple channels.

The Offer Fulfillment Module 54 may access rewards currency informationat a merchant point-of-sale device in order to pay for the purchase. Forexample, a cardholder may access and use rewards at a suitable creditcard terminal to pay for a merchant's product. For example, the OfferFulfillment Module 54 may have real-time access to rewards currencybalance through a payment network.

The Offer Fulfillment Module 54 may transfer value from the rewardsaccount to a Stored-Value account in real-time, on-demand. For example,the Offer Fulfillment Module 54 may allow a customer to redeem rewardscurrency and have it immediately transferred to a stored value account.In this way, the customer can use the stored value at a merchant in avery short time.

The Offer Fulfillment Module 54 may function as a “Rewards Concierge”that obtains un-offered rewards on demand (or automatically) for acustomer in exchange for rewards currency. A rewards concierge allows acustomer to identify a product not currently listed as a redemption itemand then calculate the item's cost in terms of rewards currency. TheRewards Module may then source and fulfill the item for the customer.

The Offer Fulfillment Module 54 may allow specific customers tosupplement their accumulated currency with cash when redeeming forspecified items. One example used by Philips Electronics is a “cashplus” system, wherein customers may purchase products from a retailerusing a reward, such as points, but if the reward is insufficient tocover the purchase, the customer may pay the remaining balance in cashat the point of sale.

The Offer Fulfillment Module 54 may comprise all current redemptioncapabilities. Redemption capabilities may comprise merchandise, Partnercurrency, checks payable to the cardholder on a statement or letter tothe cardholder, a coupon on a statement letter to the cardholder, oranother valuable good.

The Offer Fulfillment Module 54 may apply reward currency to pay amonthly minimum account payment.

The Offer Fulfillment Module 54 may use accumulated currency to purchaseor obtain a discount on specific types of future purchases. For example,the Offer Fulfillment Module 54 may allow a customer to accumulategas-dollar-points at a gas station merchant such as BP. The OfferFulfillment Module 54 may provide direct cash back to a customer's Bankasset account. The Offer Fulfillment Module 54 may donate currency tocharity, either in the form of rewards currency or as a cash donation.The Offer Fulfillment Module 54 may redeem for an investment or longterm savings product, or any other financial product. The OfferFulfillment Module 54 may apply reward currency as a credit to acustomer's account statement.

The Offer Fulfillment Module 54 may redeem currency to pay a variety ofdifferent fees and costs and to grant this capability by item, program,customer, or customer group. The Offer Fulfillment Module 54 mayautomatically waive a fee for accounts that show specific behaviors suchas spending, revolving, or a specific tenure of being a cardholder. Forexample, the Offer Fulfillment Module 54 may remove or pay a customer'saccount fee or annual rewards fee, or it may pay for (or credit the costof) rush shipping.

The Offer Fulfillment Module 54 may convert rewards points at somespecified rate and send the points to a non-Partner airline or otherPartner program.

The Offer Fulfillment Module 54 may redeem currency to reduce the annualpercentage rate of an account, such as a credit card account, for acertain period of time. There may be limits on the reduction in rate andthe time period.

The Offer Fulfillment Module 54 may be used to move rewards points to orfrom a stored value account. The Module 54 may request fulfillment fromthe Non-Monetary Gateway 34, which is configured to process thefulfillment of non-monetary rewards such as points, miles, or storedvalue. The Non-Monetary Gateway 34 may then pass the fulfillmentinformation to an External Transaction Data Processor 62, which maycreate or credit a customer stored value account with a Partner or thirdparty. The Monetary Gateway 32 may also be used to fulfill stored valuerewards for accounts stored in the Account Data Processor 22 when theModule 54 sends it an appropriate request.

The Offer Fulfillment Module 54 may redeem the rewards for a US SavingsBond or other financial instrument.

The Offer Fulfillment Module 54 provides for the processing of variouscapabilities and functions related to the fulfillment of customerrewards. The method of fulfillment varies by reward program andredemption type. Fulfillment can be through the bank, a Partner of thebank, or a vendor. If the rewards earnings are sent to a Partner orvendor, then the bank (or cardmember) may need to contact the Partner orvendor to request the Partner or vendor to deliver the award to thecardmember. In a simpler example, the reward may be automaticallydelivered to the cardmember, such as when a coupon or check reward isenclosed with, printed on, or attached to the cardmember's monthlystatement.

The rewards earnings/points can be sent to third parties for redemptionand fulfillment. For instance, a cardmember may earn frequent flyermiles with a Partner airline by engaging in specific behaviors, such asrenting cars from a Partner car rental company. At a specified time,such as monthly or after a cardmember earns a threshold number ofpoints, the points could be sent to the Partner airline. If thecardmember has an account with the Partner airline, those points couldbe stored in that account. The cardmember's frequent flyer miles couldthen be redeemed through the Partner airline directly or through thePartner airline's affiliates, such as when the cardmember applies themiles earnings toward free or discounted air travel or car rentals,respectively.

The Offer Fulfillment Module 54 may generate electronic coupons.

The Offer Fulfillment Module 54 may specify the fulfillment channel orvendor for each redemption item, and it may supply the informationrequired for fulfillment. The Offer Fulfillment Module 54 may quicklychange the specified fulfillment channel or vendor for any item andreroute fulfillment requests for changed items to the appropriatechannel or vendor.

The Offer Fulfillment Module 54 may track and generate a Partnernumbering scheme on reward coupons, and it may calculate and generateexpiration dates on coupons and certificates via statement or letter.

The Offer Fulfillment Module 54 may allow the customer to elect toobtain an earned reward (such as a check) via email, on a statement, ortransfer to a demand deposit account.

The Offer Fulfillment Module 54 may also wire transfer funds toFinancial Partners. This may occur when the PRE runs another bank orother company's rewards program when the other bank or other companywould prefer their customer's reward to be received from the other bankor company rather than the Bank operating the PRE.

The Report Module 70 may provide for various capabilities and functionsrelating to analysis and targeting.

The Report Module 70 may output various reports based on data receivedfrom other elements of the PRE. For instance, the Report Module 70 maygenerate a New Offer Created Report when a new offer is created. Thisreport may also be generated by the Create Bank Offer Module 40 and theCreate Partner Offer Module 42, which may then pass the report to theBank Interface 76. The Report Module 70 may generate a New Locked OfferReport when a new offer is locked. A new offer is locked when thepopulation is closed, and no further customers will become eligible toenroll in the program (unless another rule enables them to enroll). TheReport Module 70 may generate a Population Reject Detail Report when apopulation is rejected, which may occur when a customer account orpopulation set is rejected for one or more offers. The Report Module 70may generate a Population Missing Report when it is determined that apopulation was missing. Some or all of these reports may also be createdby the Communication Module 64 and passed to the Bank Interface 76.

The Report Module 70 may target offers to the customers most likely toredeem a reward for higher-cost items. For example, if the previousbehavior on a customer or similar customers indicate a likelihood toredeem an airline ticket award, the Report Module 70 may send thecustomer a point-burner offer to reduce the Bank's exposure toaccumulating too many rewards obligations. The Report Module may sendsuch information to the Fulfillment Reconciliation Report Module 72,which may send the information to the Bank Interface 76. It mayalternately send the information straight to the Bank Interface 76. Theinformation could then pass through the PRE to the customer 74.

The Report Module 70 may analyze customer spending or merchant patterns.Based on such analysis, the Report Module 70 may recommend that acustomer receive an automatic offer or eligibility for new features withimmediate visibility across multiple channels, for instance, any of thecommunication channels discussed above. The Report Module may send suchinformation to the Fulfillment Reconciliation Report Module 72, whichmay send the information to the Bank Interface 76. It may alternatelysend the information straight to the Bank Interface 76. The informationcould then pass through the PRE to the customer 74.

The Report Module 70 (and/or the Bank Interface 76, using data from theReport Module 70) may provide modeling analysis. For instance, theReport Module 70 may recommend that some rewards should be offered onlyto rewards seekers with the potential to be profitable.

The Report Module 70 may supply detailed activity information for aBank's marketing target analysis. The Report Module 70 may provideinformation about rewards activity, accumulation bank status, and otherrewards-related information to Customer Relationship Management (CRM)and Campaign Management (i.e., managing marketing campaigns to).Campaign Management may comprise managing product or marketing campaignsto attract more customers or otherwise improve business and profits forone or more products or programs. For instance, a marketing department,by way of the Bank Interface 76, may collect internal data about thePRE. It may collect this data from the various Modules directly (asshown in FIG. 3A), or it may collect some or all of the information fromthe Report Module 70 (optionally via a Fulfillment Reconciliation Report72). The Bank Interface 76 may then aggregate or otherwise process theinformation for marketing or other internal purposes. For instance, theBank Interface 76 may aggregate usage data for accounts in variousrewards programs to determine the effectiveness of one program comparedwith another. Based on the marketing data, the Bank Interface may outputrules to the PRE to create more rewards program offers, such as offersthat have features similar to the most successful rewards programs.

The Report Module 70 may send information to the Bank Interface 76automatically when certain criteria are met. For example, the ReportModule 70 may send a message whenever a specific customer is within acertain percentage of a redemption threshold. Such information may beused for a variety of purposes, such as to monitor and change rewardinventory as necessary, or to determine the next set of rewards programsbased on the availability of rewards for current programs.

Analysis of customer redemption patterns may result in automaticeligibility for new feature offers. These new offers may be immediatelyaccessible to the customer 74 via any of a variety of channels asdiscussed above. Information about customer redemptions may be receivedby the Fulfillment Reconciliation Module 56 and passed to the ReportModule 70 via the Fulfillment Data Processor 68. The Report Module 70may then pass the data to the Bank Interface 76 (via the FulfillmentReconciliation Report 72). The offers may be communicated to thecustomer via the Communication Module 64 or Account Data Processor 22.For example, a Web advisor or Card Member Services (CMS) advisor maychange its web page or the rewards programs offered (or otherwise changecommunications) when a customer pattern is detected. The Web advisor andCard Member Services advisor may be accessible via the CommunicationModule 64 or other modules that interface with the customer 74.

The Report Module 70 may calculate costs of rewards currency earnings(e.g., points) at the account level based on a calculated or estimatedcost per currency point. The Report Module 70 may first determine howthe cost basis determined. The Report Module 70 may support the abilityto manage accrual at an account level, a portfolio population orsub-population, or an entire rewards program.

The Report Module 70 may reconcile and settle reward currency disputesor settlements among vendors, Partners, processors and the Bank (ormultiple banks) based on business rules. The Report Module 70 mayprovide up-to-date reconciliation at a frequency defined by Bank. Suchaccount reconciliation may include both accumulation and balanceinformation.

The Report Module 70 may track a customer's (or class of customer's)history of earnings by the qualifying trigger types and attributes andby specific product and account. The Report Module 70 may differentiatepoints earned on credit card transactions as compared with demanddeposit account activity. The Report Module 70 may track earningsseparately for Partner purchases, activity bonus (first use or openaccount), non-Partner purchases, and other criteria. Such informationcan be used to determine how the costs of specific rewards programs orother PRE features. The information tracked by the Report Module ispassed to the Bank Interface 76 and processed as described above. TheBank Interface 76 processes the information to determine appropriatechanges in the system in the interest of profitability or long-term Bankgrowth, or other business interests, and then creates new rules orchanges old rules and propagates those rules through the system asdescribed above.

Through the Report Module 70, the PRE may produce audits, controls, andfile reconciliations in order to allow for monitoring the efficiency andaccuracy of the PRE, as described below.

The Report Module 70 is configured to send specific auditing reports tothe Bank Interface 76 (e.g., via the Fulfillment Reconciliation ReportModule 72), based on information received from the various Modules (asshown in FIG. 3A). Information may be provided to the Report Module on adaily or other timely basis.

From the Create Bank Offer Module 40 and Create Partner Offer Module 42,the Report Module 70 receives information regarding: offers started,offer alerts, offers locked, and offers modified. Such information maydetail such offer information by the frequency of each offer campaignidentifier, the campaign name, the offer identifier, the offer subtype,and/or other criteria.

From the Interrogate Reward Account Behaviors Module 48, the ReportModule 70 may receive cancellation and rejection reports for single andmultiple accounts and offers, including those for existing populations.The reports may detail the frequency of a particular offer, the reasonsfor a particular rejection, the offer name, and the customer accountnumbers.

From the Interrogate Reward Account Transactions Module 50, the ReportModule 70 may receive a tracking report detailing the frequency of anoffer and the account number of the accounts that did or did not havedata applied to them during a certain time period. The frequency andother data may be received by the Interrogate Reward AccountTransactions Module 50 from any of the Account Data Processor 22, theRewards Account Data Processor 24, and the Transaction Data Processor26. The same data may be received by the Report Module 70 from thosemodules via the Communication Module 64, or another indirect route ofinformation through the system, such as via the Interrogate RewardAccount Transactions Module 50.

From the Offer Qualification Module 52, the Report Module 70 may receivea tracking report detailing the frequency of an offer and the accountnumber of accounts that went through the qualification process andeither qualified or did not qualify for the offer.

From the Fulfillment Reconciliation Module, the Report Module 70 mayreceive a status report detailing the frequency of a number ofqualifying accounts by offer and internal or external status. The Module70 may also receive information regarding the daily minimum, maximum,mean, and/or sum of the amount spent by the qualifying accounts. ReportModule 70 may also receive information regarding the rewards fulfilledsuccessfully. This information may describe the frequency of customersqualifying. This may be detailed by offer, by account number, by therecipient of the fulfillment file (e.g., 32, 34, 36, 38, 78, or 80). TheReport Module 70 may also receive information regarding the rewardfulfillments that were rejected, and this information may be detailed byreasons for rejection (such as the reason code). This information maydescribe the frequency by active or live offer; by date; by accountnumber; by the recipient of the fulfillment file; by the reason code(e.g., from a reject report) which may comprise the number of purged orproduct traded accounts; by rewards offer; and by account number whenthe reason for rejection is that the reward was product traded, closed,lost or stolen.

The Report Module 70 may receive similar associated information from theother Modules. The Report Module 70 (e.g., via the FulfillmentReconciliation Report Module 72) and the Communication Module 64 mayoutput memo reports, phase reports, live offer cancellation reports, andoffline earn reports, success, and failures. Such information maydescribe the frequency by offer identifier, by the memo posted toaccounts, by phase, by subtype, by account number, by the number ofaccounts that arrived through a Partner file, the accounts that are liveor active, notification sent, and cancelled offers by reason code.

Such auditing processes may allow for internal and external audits upondemand. For instance, an external source such as a Partner 80 or thirdparty 78 may request an audit by via the Bank Interface 76. The BankInterface 76 may then create and provide rules requesting the variousModules to output audit reports. Any of the Modules may be configured toperform such self-audits. Self audits may comprise checking to confirmthat information was received by the Module and that the informationcomprises appropriate content and appropriate formatting. For example,the Create Rewards Account Population Module may output a report toconfirm that a file was received, that the file has appropriateinformation content, and that the file has the appropriate header and/ortrailer information.

The PRE is designed to operate in a test or simulation mode. In such amode, there may be no actual customers or real transactions, but rathersimulated customers, accounts, transactions, and rewards. The PRE couldoperate as it would for a real promotional rewards program, except thatthe necessary external inputs and communications with the PRE systemwould be fabricated by the Bank Interface 76 or another test entity. TheBank Interface 76 could monitor the performance of the various modulesthrough direct monitoring, as shown on FIG. 3A, and/or via the ReportModule 70. The Bank Interface 76 could analyze the offers, rewards,earnings, fulfillment, and other functions to ensure that the PRE isworking and producing proper results. For instance, in the test mode,the Bank Interface 76 would ensure that simulation customers in a fakemiles rewards program accumulate and earn miles, rather than anotherreward like cash rebates.

An advantage of the PRE is that it may de-couple reward participationfrom plastic fulfillment. In other words, the physical plastic card(e.g., a credit card) may no longer be necessary to obtain awards. Asdescribed above, the rewards may be accrued and fulfilled without regardto the physical plastic. For instance, the customer can request rewardsonline. In addition, a cardmember may switch redemption or defaultaccumulation options without the need for a re-issue of a plastic card;again, such selections can be made online or via other communicationchannels that do not involve a physical card.

Referring to FIGS. 3A and 3B, the Rewards Account Data Processor 24, theInterrogate Reward Account Transactions Module 50, and the ExternalTransaction Data Processor 62 may communicate with each other toreconcile rewards provided through Partners 80 and third parties 78 (viathe External Transaction Data Processor). A reward accumulated at theProcessor 24 may be passed through the Module 50 to the Module 62, wherethe reward is passed to a third party 78 or Partner 80 for fulfillment.The outside party 78, 80 would confirm to the Processor 24 through theModules 50, 62 that the reward will be fulfilled, and the reward isdeducted from the customer's rewards account stored in the Processor 24.The Processor 24 and Modules 50, 62 may thereby provide closed-loopedreconciliation of file transfers to Partners 80 and third party vendors78. Appropriate reporting may be passed to the Reporting Module 70.

The Report Module 70, Fulfillment Data Processor 68, and OfferFulfillment Module 54 may communicate through each other to providereasonableness checks, audits, and reporting for accumulation andredemption. For instance, when the Fulfillment Data Processor receivesinformation about missing reward inventory or a list of rewardsrejected, it may pass it to the Report Module 70.

The Bank Interface 76 may run rewards and loyalty programs for Partners80 and non-Bank businesses. This may require the capability for multipleinput/outputs with those Partners 80 and non-Bank businesses. Forinstance, it may require that Partners 80 and third parties 78 outputall customer transaction information to the Bank, e.g., to the BankInterface 76, External Behavior Data Processor 60, and the ExternalTransaction Data Processor 62. It may also require the Partners 80 andthird parties 78 to provide activity tracking and invoicing informationto the PRE.

The PRE allows a Bank, or a department of a Bank such as a marketingdepartment, to offer multiple additional rewards earning opportunitiesto credit cardmembers. The processing is controlled by a rules-basedengine, in which the Bank or its various business lines can specify thecardmember eligibility and earnings rules. Cardmembers are targeted forspecific promotional rewards offers and enrolled in one or morepromotional rewards programs. Rewards are then earned based on explicitcardmember behaviors and transaction qualifications. Eligiblecardmembers are awarded promotional rewards only when the specificbehaviors and/or transactions qualify for rewards under the earningsrules.

Rewards earnings (or rewards) may be any of the following: a physicalreward, such as a plush toy or monetary certificates; a monetary reward,such as a credit to a cardmember's account; a non-monetary reward, suchas points or miles, which can be applied to a rewards account or to astored-value card; a federal reserve savings bond; donations to acharity such as an educational institution; or another product orservice that may be of value to a bank customer. Rewards earnings mayeven be “earned” by purchasing them outright.

Rewards earnings are accrued when specific transactions or behaviorsoccur during a reward program's earning period. The specifictransactions or behaviors which trigger rewards (“triggering behaviors”)may comprise: credit and debit card transactions, such as debittransactions, opening an account, paying a balance, paying interest, andlinking with another account; other transactions associated with theBank offering the reward, such as making a deposit, making a withdrawal,paying interest, drafting a check, paying a fee for a banking service;loan transactions, such as paying interest, transferring a balance,issuing a convenience check, and accessing a line of credit; a merchantpurchase; checking and savings account activity; account paymenttransactions, such as setting up a recurring payment, enabling anauto-payment, paying an annual fee, or paying a rewards fee;transactions with Bank Partners; transactions with third parties;brokerage transactions, such as purchasing or selling securities,depositing funds, and transferring holdings from an external account toa Bank account; and other transactions or behaviors. Some othertriggering behaviors may comprise purchases, transferring a balance,opening a checking account, opening a credit or debit account, applyingfor a loan or other credit account, paying a balance on time, andmaintaining at least a specified minimum balance. Triggering behaviorsmay also comprise: accumulating a specific amount of charges; charging aspecific amount; charging a certain number of transactions; transactingat a specific location; using an account card for identificationpurposes; or otherwise using an account card for purposes other thanfinancial transactions. Yet other triggering behaviors/transactions maycomprise: obtaining a cash advance and using a convenience check. Itshould be noted that some behaviors do not necessarily require anyaction on the part of the cardholder. For instance, in somecircumstances maintaining a minimum account balance might be satisfiedby merely refraining from withdrawing funds from the account.

Other behaviors and transactions that may impact rewards may comprise:having a specific account balance; having above or below a specificaverage daily balance; revolving an account balance versus paying infull; having an inactive account; maintaining a type of account balance.Behavior and transaction data is stored at the External Behavior DataProcessor 60, the External Transaction Data Processor 62, theTransaction Data Processor 26, and the Account Data Processor (whichstores behavior data related to accounts).

A rewards earning period, i.e., the time period during which a rewardmay be earned, may be any definable time period, such as: all weekendsin March, 2004; Nov. 28, 2005; the entire year of 2005; May 16, 2004through Jun. 5, 2004; the holidays in November, 2004; March, 2004, andJune, 2004; Tuesday, Wednesday, and Thursday of the first quarter of2003; the hours of 8:00 am to 5:00 pm E.S.T. from Jan. 7 to Feb. 10,2004; and a period of one month beginning when a cardmember makes afirst purchase on a credit card.

The Bank Interface 76 rules may enable any credit card transactions(e.g., purchases, balance transfers, convenience checks, adjustments,and customer service disputes) to qualify as rewards earningtransactions for any rewards offer. These credit card transactions canbe interrogated from the credit card processor or from a file providedby an outside entity.

The Bank Interface 76 rules may classify the credit card transactions bytransaction type, e.g., purchase, balance transfer, convenience check,or adjustment. Any combination of transaction types can be chosen asqualifying agents for a reward offer, as defined in the Bank Interface76 rules. For instance, the Bank Module may specify that all balancetransfers and convenience checks may qualify for an offer. TheInterrogate Reward Account Transactions Module 50 is configured todetermine the transaction type of the transactions it processes from theTransaction Data Processor 26 and the External Transaction DataProcessor 62.

The PRE may be configured to match credit card debits (e.g., purchases)and credits (e.g., refunds). For instance, any credit card debittransaction that is subsequently reversed by a matching credit cardcredit transaction (e.g. return, adjustment, etc.) may have its initialrelated rewards earnings reversed (i.e. nullified). Also, even if thatreverse transaction happened after the credit card account had issued astatement to the customer or the initial reward has been redeemed; thus,it may be possible to have a negative rewards balance. For instance,when the Interrogate Reward Account Transactions Module 50 processesrefund or other credit transaction data from the Transaction DataProcessor 26, it may automatically reverse any reward earned by a priorcorresponding debit transaction. Alternately, such transaction andreward-earning data may be checked by the Offer Qualification Module 52prior to authorizing the fulfillment of a reward.

The PRE may be configured to identify a Bank's credit card accounts thatare active and in good standing. This information may be posted by theBank (e.g., through the Bank Interface 76) to the External SuppressionData Processor 28, where it can be interrogated by the OfferQualification Module 52 prior to authorizing the fulfillment of areward. For instance, the Offer Qualification Module 52 may only qualifycredit card accounts that are active and in good standing (i.e. notdelinquent) for a reward at any given time. If an account is not in goodstanding, then when prompted, the External Suppression Data Processor 28will notify the Offer Qualification Module 52 of the status of theaccount, and the Offer Qualification Module 52 may not process thereward for fulfillment. Each offer may have different rules. The rulesmay also incorporate the cardmember's status for other bank products.For instance, by opening a checking account a customer may earn 5000miles on the customer's credit card account.

The PRE comprises one or more processors that can calculate mathematicalformulas, e.g., the Offer Qualification Module 52. Monetary andnon-monetary rewards earnings may be determined by a mathematicalformula containing a transaction amount, or the earnings could be afixed rewards earning amount. Non-monetary rewards earnings may bemathematically determined in a variety of ways as prescribed by therules provided by the Bank Interface 76. For instance, a reward programmay offer rewards points equal to the accumulated transaction amounttimes 2.00 (i.e., double points). The Bank Interface 76 may provide areward program wherein customers earn different rewards based ondifferent spending thresholds, for instance, an offer specifying that ifthe transaction amount is less than $1001 then the rewards points equalthe transaction amount times 2.00, otherwise the rewards points equal3.00 times the transaction amount (i.e., earning threshold). Similarly,the Bank Interface 76 may provide three tiers of earnings rates, whereintransaction amounts greater than $1000 earn points equal to the sum ofthe portion of the transaction amount less than $1000 times 2.00, plusthe portion of the transaction amount greater than $1000 times 3.00. TheBank Interface may also provide a reward program wherein reward milesequals the transaction amount plus 2000. The Offer Qualification Module52 may also be configured to allow for phased offers and phased rewards,where a customer earns a consistent or increasing level of a reward forperforming a desired behavior (or transaction) over a longer period oftime. For instance, according to one phased offer, a customer may earn1000 points for spending $500 in June, 2000 points for spending $500 inJuly, and 3000 points for spending $500 in August, where the July pointscan be earned only if the June threshold was satisfied, where eachsuccessive phase of earnings can only be accrued if the prior phase iscompleted successfully (i.e., additional points in August can be earnedonly if the customer spent $500 in both June and July). Through anotherphased offer, a customer may earn 500 bonus miles each month for thenext five months as long as the customer spends $500 per month (or makesa certain number of purchases).

The PRE applies rewards earnings to the cardmember's rewards account.rewards earnings will be applied to the cardmember's rewards accountafter the specific rewards offer earning period has ended on thespecific rewards offer award date, or the reward may be awarded at otherspecified reward offer earning distribution dates.

The PRE may identify credit card transactions at the account level. OnlyCredit card transactions made by a specific cardmember account at a Bankcan be used to qualify that cardmember account for Reward earnings givento that cardmember account. I.e., a cardmember's credit cardtransactions-related rewards earnings cannot be applied to a differentaccount held by the cardmember. The processor can determine rules.

The PRE may qualify a single credit card transaction. A single creditcard transaction (or multiple transactions) can be qualified for arewards offer based on a combination of factors according to the rulesdefining the reward offer, such as: whether the source of thetransaction (e.g. Bank Identification Number (BIN), cardholder acceptorID (CAID) and/or Standard Industry Code (SIC)) was in the specificrewards offer source requirement (e.g., the PRE may qualify a taxpayment for a reward if the payment is made using a specific creditcard). For instance, a reward program may provide a reward to a customerfor paying the customer's property taxes using a Bank credit card. Thecredit card transaction for the tax payment would have identifierinformation indicating that it was a tax payment. Such transactioninformation would be collected by the Transaction Data Module 27 andpassed to the Transaction Data Processor 26. The Offer QualificationModule 52 may then determine that the customer earned a reward when itprocesses the customer transaction information and determines that acustomer reward program in which the customer is enrolled providesreward earnings for tax payments. Other factors include: whether thecredit card account number is eligible to participate in the rewardoffer (e.g., whether the account number satisfied the specific rewardsoffer account portfolio requirement, e.g., entire portfolio, Partner,co-brand targeted accounts); whether the transaction was made within thespecific rewards offer earning time period; whether the amount of thetransaction (or accumulated amount for multiple transactions) wasgreater or equal to the specific rewards offer trigger amount (minimum$0.01, in increments of $0.01); and whether the debit transaction typewas in the specific rewards offer set of debit transaction types. ThePRE may also qualify a single credit card transaction based on themerchant or the transaction records pertaining to the description of themerchant.

The PRE may qualify a customer on multi-period rewards earnings periods.Multi period rewards earnings periods can be used in a rewards offer todetermine cardmember eligibility for subsequent earnings periods. Forinstance, a cardmember might only qualify for the current rewardsearning period if they have already qualified in the previous rewardsearning period, e.g., in a phased offer. However, a rule may specifythat cardmembers always qualify for the first rewards earning period ortier. This functionality may be accomplished through Modules 44 & 46which create the populations for a particular offer (or offer subset,such as a second phase of an offer). Alternately, this functionality maybe accomplished when Modules 48, 50, & 52 determine rewards earnings andvalid reward-earning behaviors and transactions.

The PRE may identify accounts that have been purged or that have a cardthat has been lost or stolen. For instance, such information may beposted directly to the Bank via the Communication Module 64, the BankInterface 76, or the Account Data Processor 22, e.g., if the customerreports a lost or stolen card. Such information may thus be directly orindirectly provided to the Account Data Processor 22 to reflect the newaccount data. If a credit card account is lost or stolen, then theAccount Data Processor 22 may transfer any of its rewards offers andassociated rewards balances to the replacement credit card account assoon as the new account is available. If a credit card account ispurged, then any of its rewards offers and associated rewards balancesmay be removed based on rules governing retention of records andreinstatement of closed accounts. If the account is purged from the baserewards system, the account must be purged from the PRE (and the AccountData Processor 22), except possibly for purposes of record-keeping.

The PRE may “product switch” accounts. A product switched account maycomprise an account with an associated rewards program that is convertedor otherwise switched into another account or account portfolio that hasa different associated rewards program. To accomplish this, the BankInterface 76 may create rules that pass through the system in order toedit the appropriate rewards accounts (and/or customer accounts) thatare being product switched. For example, the Bank Interface 76 may sendrules to the Create Bank offer Module 40 or Create Partner Offer Module42, which may then create the new offer or switch it with the old one.Alternately, the Bank Interface 76 may directly modify the Account DataProcessor 22 and Rewards Account Data Processor 24 to convert the oldaccount to the new one. Other Modules and/or Processors may be modifiedor provided rules as needed.

Product switching may occur when a Partner account portfolio (i.e.,collection of accounts and rewards programs) is eliminated or switchedinto a portfolio of a different Partner. For example, a VISA portfolio(i.e., collection of accounts and rewards programs) may include aVISA-sponsored credit card account with frequent flyer rewards. The VISAportfolio may be eliminated when the Bank switches all of its accountsto MasterCard. In this event, the VISA-sponsored credit card may beconverted into a MasterCard-sponsored account with a 1% rebate on allpurchases. If a credit card account is product switched into anotherportfolio or account, then all of its rewards offers and associatedrewards balances that existed in the portfolio or account before it isswitched must be transferred or converted to the new credit card accountor portfolio. In another example, if a Partner airline credit cardaccount is product switched into a Partner hotel credit card account,then the account does not continue to earn airline-related rewards;rather, it will earn hotel-related rewards.

Rewards earnings balances for a specific rewards offer may be capped ata maximum value, according to the rules governing the program as definedby the Bank Interface 76.

Memorandums, notes, or other information may be posted to the cardmemberaccount information stored in the Account Data Processor 22. Allcardmember accounts that are eligible for a specific rewards offer,qualified for a specific rewards offer, or have been fulfilled for aspecific rewards offer may have a related memo placed on theircardmember account. For instance, the Communication Module 64, BankInterface 76, Create Rewards Account Population Module 44, or otherelements in communication with the Account Data Processor 22 may postsuch information to the account. The Bank may service these memos, e.g.,through the Bank Interface Module 76.

Each of the Modules and Processors can be modified, e.g., by the BankInterface 76, during a reward program. For instance, the OfferFulfillment Module 54 may be given instructions not to send fulfillmentsfor a set of specific rewards, or for a set of rewards that satisfyspecific criteria.

Other embodiments and uses of this invention will be apparent to thosehaving ordinary skill in the art upon consideration of the specificationand practice of the invention disclosed herein. The specification andexamples given should be considered exemplary only, and it iscontemplated that the appended claims will cover any other suchembodiments or modifications as fall within the true scope of theinvention.

What is claimed is:
 1. A method for identifying and offering rewardprograms, comprising: at least one computer processor identifying afirst reward program that a customer is enrolled in, the first rewardprogram having a first account and associated with a first reward offer;receiving, from the customer, authorization to product switch from thefirst reward program to a second reward program, the second rewardprogram having a second account; the at least one computer processorestablishing one or more conversion rules for transferring thecustomer's rewards in the first account to rewards in the secondaccount, wherein the one or more currency conversion rules comprises oneor more specified reward program transfer pairs indicating an allowableconversion of rewards from the first reward program to the second rewardprogram; the at least one computer processor converting rewards in thefirst account rewards in the second account based on a conversion rateand in real-time, wherein the conversion rate comprises a universal unitto facilitate conversion of the rewards from the first account to thesecond account; the at least one computer processor depositing theconverted rewards to the second account; the at least one computerprocessor automatically terminating the customer enrollment in the firstreward program once the converted rewards are deposited the secondaccount; and the at least one computer processor transferring the firstreward offer to the second reward program.
 2. The method of claim 1wherein the rewards comprise redeemable points.
 3. The method of claim 1wherein the rewards comprise cash value.
 4. The method of claim 1wherein the rewards are issuer-specific or sponsor-specific.
 5. Themethod of claim 1 wherein identifying a first reward program that thecustomer is enrolled in comprises receiving account informationassociated with the first reward program from the customer.
 6. Themethod of claim 1 wherein the first reward program is associated with afinancial account.
 7. The method of claim 1 wherein the first account isassociated with a financial institution.
 8. The method of claim 1,wherein the second reward program comprises a plurality of rewardprograms.
 9. A system for identifying and offering reward programs,comprising: at least one server, comprising at least one computerprocessor, communicatively coupled to a network; the at least one serverconfigured to: identify a first reward program that a customer isenrolled in, the first reward program having a first account andassociated with a first reward offer; receive authorization to productswitch from the first reward program to a second reward program, thesecond reward program having a second account; establish one or moreconversion rules for transferring the customer's rewards in the firstaccount to the second account, wherein the one or more currencyconversion rules comprises one or more specified reward program transferpairs indicating an allowable conversion of rewards from the rewardprogram to the second reward program; convert rewards in the firstaccount to rewards in the second account based on a conversion rate andin real-time, wherein the conversion rate comprises a universal unit tofacilitate conversion of the rewards associated with the first rewardprogram to rewards from the first account to the second account; depositthe converted rewards to the second account; automatically terminate thecustomer enrollment in the first reward program once the convertedrewards are deposited the second account; and transfer the first rewardoffer to the second reward program.
 10. The system of claim 9 whereinthe rewards comprise redeemable points.
 11. The system of claim 9wherein the rewards comprise cash value.
 12. The system of claim 9wherein the rewards are issuer-specific or sponsor-specific.
 13. Thesystem of claim 12 wherein the issuer-specific or sponsor-specificexchange entity comprises any redeemable value.
 14. The system of claim9 wherein the identification of the first reward program is provided bythe customer.
 15. The system of claim 9 wherein the first reward programis associated with a financial account.
 16. The system of claim 9wherein the first account is associated with a financial institution.17. The system of claim 9, wherein the second reward program comprises aplurality of reward programs.
 18. The method of claim 1, wherein thefirst reward program is associated with a first credit card association,and the second reward program is associated with a second credit cardassociation.
 19. The system of claim 9, wherein the first reward programis associated with a first credit card association, and the secondreward program is associated with a second credit card association.